Merle,
I am reprinting a post I made on the NPEC thread that has some information about MXR. It will be hard to follow for people who aren't familar with NPEC, but if they're confused I encourage them to call the president of MXR, Russell Godwin at 1-800-774-5133, and get the real story.
Regards
ken garnache
From the NPEC thread:
Lance,
What follows is my own understanding and opinion and speculation. If
anyone is going to buy or sell anything they need to do plenty of their own dd before they do. You can not rely on what I say here.
Warning: this post contains WILD ASS speculation!!
I think the cleanup that Mr. Berg refers to with MXR involves about 120,000 in past debt. I believe that Mr. Chysik the ex-president was to sign off on 70,000 of this and a group of investors was to have taken care of the remaining 50,000. I believe this did not go to completion as the group pulled out due to the length of time the Bank of Nova Scotia was taking with confirmation from the Branch Office Omnibus. I believe the company had sent it's second request for this to move forward, but nothing had been heard and the group pulled out saying they would be back in January. I believe now that the company will do an end run around the problem until January.
I believe the next step is the completion of the audit that is ongoing by De Visser and Co. After that there will be an offering so there will be some dilution of the stock.
So lets speculate further it looks like the 1100 hectares that contain the Mina Claudia Claim and the 2000 that NPEC talks about recently aquiring are one property, one hill as it were and some of the surrounding ground as referenced by the Virgina claim. Let's call this whole property the Mina Claudia Project, as the Mina Claudia is one of the mineralized deposits.
This of course is the 3100 hectares that the MXR release talks about. Now we know from past releases that the "Mina Claudia Project" has various claims owned by I believe various families in Chile, of which the Garcia family is the one we've heard of.
We know from releases that there is ongoing work being done on that
property. There must be some protection for the companies, to be spending this money. I think that one of the partners had an option on the entire property. Now I don't think it is NPEC or MXR as they wouldn't be juniors. So I believe we got our 20% from the unknown partner, and that the ratios will remain constant and we will get 20% of the entire 3100 hectares.
Now MXR has a handshake agreement with the unknown partner. I think this implies a closeness. Russell Godwin is the new president, and has brought Gordon House and and Malcolm Fraser onto the board. Malcolm as we know is the liason and is down in Chile right now, and is spearheading the project. Russell Godwin is a former stock broker and if he has settled with a handshake I am guessing that there is a close relationship between him and our third partner. If Malcolm is spearheading things and Russell has a past relationship I imagine that MXR will sitting at the table when dinner is served. I sense a sweetheart deal.
So who is paying for the work going on? Not MXR, this project is currently their only prospect, they have no cash flow. I don't think NPEC is either. We can't even afford an IR firm yet. So I think the third party is, and that we and MXR will reimburse at a later time. I think there is a good possability that there is some closeness between NPEC and the third partner as well.
Now what about the Mina Claudia Project. I have been reading some
elementary geology. Looking at the past releases I think they are trying to tell us something. The hill has copper in it we know that. But I think the possibility exist that the ground had copper in it before the hill was pushed up. They talk about the results showing that the dacite dome being a cap rock to the underlying andesitic volcanics. They talk about supergene enrichment zones. I think there is also a possibility that there is a lot of copper under the hill as well as in the hill. That if this is the case that the concentration under the hill could be well above what is above it. When they
talk about supergene I believe they're saying that copper has eroded and leached from the hill and entered the underlying ground areas. This happens over time and the travel of the minerals would stop at the water table. It would tend to not travel further because beneath the water table all space is saturated by water. It would travel above because there is a mixture of air space and water and would stop at the boundary. If there was copper there to begin with and it concentrated over many years we could have a pearl in our oyster. The oyster is nice, Ah but the pearl...
I think that the drilling could be very exciting. I believe they have located drill equiptment nearby. I believe they will drill with air reverse circulation drills. I don't think the drilling will take place until the third partner is on board. It may not begin for a month or more. Malcolm is down there now and probably has a lot of legal paperwork to take care of, but eventually there will be serious
attempts to increase production and develop the property through further testing. They could also do a lot of prework for the drilling like figuring out where to drill and cutting pads. If everything goes perfectly they could probably drill in less than two months the amount recommended by Gordon House in his report.
As far as the relative strength of the two companies. Let's look at MXR. Less shares out, on the Vancouver exchange, their package contains an unaudited report that tells you right off the bat about options, warrants, which board member owns what, I got my package within a week. They are undergoing an audit so there should be audited information coming out. I think it is possible they may get a very good deal on this property, which has unknown potential. Share price was near a yearly low, I'm not sure what it did today. I talked to Russell Godwin when I called for my package, and it is my own subjective opinion that I agree with what Merle said, that he is
impressive. Again my own subjective opinion is that he came of as a very straight arrow. I also agree with Merle that this is not an either or situation.
On the negative side they are exposed to only one project. They have no current cash flow. They have unresolved debt from the past, albeit only 120,000. They have to complete their audit, and have an offering that will dilute their shares. If they are getting a good deal, it might not be much dilution. The project needs the third partner to come forward to really take off, but hopefully this will be within the next month or two.
Lance as you may be able to tell I am researching MXR previous to a possible purchase of shares. I would appreciate if you could puncture some of my ballons as only you can, to help me in this decision. Remember this has just been me thinking aloud, and you CAN NOT Rely on what I say here.
Regards
Ken |
