Hi Brian -- MNS profit potential is substantial - here are details as promised, from the information circular sent out this week to Minestar shareholders. As I mentioned, this is not sexy stuff -- (at least initially) -- just a solid business opportunity with solid profit and share price potential.
Minestar has the sole rights to develop a silica sands mining property in Harrison Lake British Columbia. This site was discovered in l995 -- subsequent tests have revealed a minimum of 37.5 million tonnes of a uniquely high-grade silica sand -- with significant gold traces.
There are proven local and international markets for this sand -- golf courses, glass manufacturing, seed and planting operations, foundry, drilling and specialized concretes.Current prices for sand of inferior quality is approx $60 per ton. MNS will be able to beat this by 25-35% -- thus guaranteeing market share. Gold recovery will increase profit potential.
The Alberta Securities Commission required MNS to have $600,000 of sales in place before approving this initial Major Transaction. They've tripled that -- not including whole boatloads that will be shipped to Japan.
More news will be issued, following the first MNS annual meeting Dec. 10 -- which will ratify the Harrison Lake deal and authorize the directors to enter into other deals. One will be a gold play in Venezuala. This is a Junior Capital Pool company with other plans that have attracted some names to the Board which, when announced, will be recognized in the West.
The initial Board looks solid -- Mobil Oil senior staff engineer -- Aspen Exploration Ltd. VP-- President, CEO, American Lime and Materials -- other directorships held -- Galleria Resources ASE-- Misty Mountain Gold VSE --etc.(there are no promoters on staff and no one is being paid a salary)
The shares of MNS are narrowly held. There are 3,433,333 common shares issued -- 1,333,333 of which are held by the 4 directors. There are no preferred shares. Of the 2.1M shares in public hands, 600,000 are currently being issued through a private placement. Holders of these shares will also revieve equivalent warrants to purchase shares at $.75 before October of next year. (I am aware that some MAJORS are involved in the private placement including Scotia McLeod who also bought a substantial block over the counter last week -- thats a good sign).
Analysts involved in the Private Placement have estimated first-year profits to be in the 3-5-9 million dollar range. The company has no debts. What will a $1-3 profit per share do to the share price?
I for one will be anxious to see. Hope this answers some of your questions. |
