More exerpts from their 3rd qtr. report:
" ... on Nov. 5, 1996, the Corporation filed a preliminary prospectus relating to an offering of units comprised of flow-through common shares and silver royalty certificates through ScotiaMcLeod Inc., Midland Walwyn Capital Inc., and Maison Placements Canada Inc.
The Corporation is now focused on the successful conclusion of the offering and on securing the preproduction capital required to complete the rehabilitation and upgrading of the existing surface infrastructure, on developing mechanized haulage declines into the production zones of each of the Bellekeno and Silver King mines, on securing the underground mining equipment necessary for the implementation of modern mechanized mining methods and on sustaining the Corporation's overhead until production revenues resume in 1997."
The way I see it, they've set up the financing for the mining or production end of it, with some loose ends perhaps to paying the existing planning engineers and other senior staff in some way (share offerings, rights, warrants, etc.) until cash flow from production later this year kicks in.
Finally, I think they have too much ore already delineated to cause concern of a possible delisting of the company; the only concern may be they become a takeover target from the likes of Royal Oak Mines, (which tried but was outbid in its attempt to grab Lac Minerals, if you'll recall). RYO is not respected by the Street, and would be trading in the high 'teens instead of the $4 and change it is currently at if a different person headed it up.
At $1.10/share in today's trading, it may well be at the lowest price it'll get to before the production date is announced. [remember Golden Rule when it was at $1.00 and change - not so long ago ... ]
Good Luck!! Keep in touch!
Harry K.
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