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Gold/Mining/Energy : NOVAWEST RESOURCES INC. (NVE.v) -- Ignore unavailable to you. Want to Upgrade?

To: Mike Campagna who wrote (1375)	6/30/1999 8:49:00 AM
From: WWS	Read Replies (1) \| Respond to of 1434

While NVE begs for scraps to stay alive, DNI is drilling 23 holes at Raglan, some right near to FL's own drill rigs. IMO, if they hit then NVE will have value, otherwise not. Good luck to you! exchange2000.com

To: Mike Campagna who wrote (1375)	6/30/1999 1:32:00 PM
From: Barry Cox	Read Replies (2) \| Respond to of 1434

Mike I am sure the low price it has been trading at recently has something to do with the extension. Investing in any junior mining company is a risky business and should only be considered with money you can afford to loose. Rights offerings have a couple of benefits. If all existing shareholders exercise their rights their participation in the company is not diluted. Unlike a private placement, shares usually become free trading as soon as issued. It is very difficult for most juniors to raise substantial money at this time and many of them have to depend on existing shareholders to provide financing. Nuinsco Resources, a company I held shares in at the time, and do again, is a good example. Before Oct. 24/98 they were trading between .32 and .40 cents. On Oct. 24 they announced a rights offering at .32, closing on Dec. 4/98. By the record date of Nov. 3 they were at .27 and traded mostly from .25 to .27 until Dec. 4. Management held 27% of the shares and indicated they would fully subscribe so a fair chunk of money was guaranteed and I understand the rights were oversubscribed by the existing shareholders. Why they traded below the exercise price I don't know, but the rights offering gave them enough money to do some drilling and come up with results good enough to get a $10,000,000 financing. Their shareholders had enough faith in the management to take a risk. Much like Nuinsco, the week before the rights offering was first indicated on Feb 3, Novawest was trading in the .50 range with a high of .65. On May 14, the day they were officially announced the close was .40 and NVE has traded from .25 to .38 since. There is no easy answer to this, someone asked earlier slow death was the only way. I guess the existing shareholders have to make a decision. The intrinsic value of a share is very little. It depends on your assessment of management and the properties the are trying to develop. So what a share is trading for today doesn't come into the equation. You already have a certain amount of money invested in the company and have to decide whether to protect it or let it go. Any company needs working capital to survive, and I am sure this one has to meet certain commitments to maintain title to their properties.Outside investors aren't prepared to commit large sums of money at this time so as far as this rights offering goes the existing shareholders must decide. Do they have faith in the management? Will the money they invest now help to protect what they already have invested? If current shareholders make an investment now will it help to attract outside capital? Is it worthwhile to help keep the company afloat until the investment climate turns around? And how soon might that be? Should they let their shares go and get out of the speculative game? I am sure there are many other questions, but this is a subjective matter and only the individual can decide. Talk to any other you know with shares in the company and make a group decision. Best I can do. Good luck