G:
This news about our pulling the Convertible Debenture financing seems to be clearer to you than it is to me. On balance, it would have been good to top up the war chest so that we could expand our exploration. (The original plan was to have drills turning in several different projects.) On the other hand, I have certainly received enough calls from investors angry or worried because of issues raised in the planned financing about dilution and debt. Is the news more bad than good? At the moment, it's probably more the former. On the other hand, we do have enough money to get through this year, including conducting a healthy drilling program in our top project, Santa Cruz Vanguardia. Further, the results we are getting from there are confirming this as a high priority, highly prospective project for both silver and gold, with the silver looking better every day (and because of results, not just because of the market).
I'll repeat, I don't know why International Pursuit is doing so well. Nor do any of the professionals on the street that I've been talking with. But they are, and congratulations are due. We're not in competition with them -- our challenges are Mother Nature, Lady Luck and Her Majesty, The Market.
The financing does not seem to matter one way or another concerning JV's, with the possible exception that it may have provided a company with an alternative way to do a deal. But there are always many ways to do a deal.
JV's are tough in most markets, and incredibly difficult in this one. I understand that Noranda, Cominco, Newmont and a few other majors are going through major lay-offs, for example, and they are only some of the companies for whom exploration has become a short-term, low priority. Few companies are interested in in early-stage projects. Having said this, during January and February, we are having five or six project visits by senior geologists from other companies. They are looking at a few projects in South America, and we are interested in looking at any reasonable deal. So far,the process has brought us consistent glowing (technical etc.) remarks about the projects but comments either that it's too early stage for them right now or now that they've got to take it to the board or management back home, and we are waiting for a reply. We're getting more of the latter lately. I'm awaiting decisions from a couple of companies now and we're got more visits coming up within the next couple of weeks, two unsolicited.
As an investor, you can read this any way you want, including making a decision that these projects are no good. However, as someone who is seeing the results building, and listening to the reactions of other (outside) geologists, I couldn't come to that conclusion.
I still believe we'll have a JV soon. I've been wrong before.
I hope this helps.
Greg |
