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Gold/Mining/Energy : Rock Resources -- Ignore unavailable to you. Want to Upgrade?

To: the Chief who wrote (24)	10/23/1997 8:42:00 PM
From: James	Read Replies (1) \| Respond to of 1996

Chief, let me expand on my points, 1. The property issue: I'm very familiar with Royal Oak's case and the level of pressure the company and Geddes had to apply to the provincial government to be compensated for Windy Craggy. It was a very lengthy and expensive process. If it took Royal Oak that much to get a settlement, just imagine what it is going to take for a very junior company like Rock to get Anywhere. Even in the remote chance the goverment agrees to a settlement, I will gaurantee you it will not be a simple cash settlement. It will be in the form of an "economic assisstance" package much like Royal Oak's, so the goverment can keep the Jobs and revenue benefits to the province. 2. The share dilution issue: I still call a 3 million share financing at $.25 (yr hi .91/ yr lo .25) with 3 million warrants attatched at $.25 & $.30 excessive share dilution. I'm not saying don't put your money into Rock, it may well go considerabely higher. But if and when it does, take your money and run, because if the promotion runs out of steam or the properties or whatever are dissapointing, then there is going to be 6 million shares (assuming the warrants are exercised during the stock run up) ready to be dumped into the market and the placees can afford to sell the stock all the way down to a quarter and make profits while they are doing so. You see it happen time and time again. It is for that reason I'm against large cheap financing.