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Gold/Mining/Energy : Cadre Resources (CSL.V) Awaiting production #'s and Financ -- Ignore unavailable to you. Want to Upgrade?

To: chevalier who wrote (473)	3/21/1998 4:43:00 PM
From: Francis R. Biscan Jr.	Read Replies (1) \| Respond to of 1285

>> From the research that I have done on this front investors should be banging down their door for money. The conclusions that I came up with are as follows: 1)Nobody wants to invest in a project in Venezuela Well that might be the perception out there for the most part, but Teck will probably be spending a good deal of money there on a diamond project this year, which may fit well with CSL's project. I beleive that having a clean, clear title is very important in Venezuela or you will more then likely suffer the consequences. >>2)management is not well respected in the business world or has no financial connections.<< With this company, the story is a lot more complex then that. It stumbled in the first year of it's inception, due to bad management, and a contractor that never completed. A new board was put in place, then Venezuela had currency problems. After that, they had to deal with a lawsuit from the previous contractor. We are still dealing with the lawsuit, as of the news release before this one. Considering all this, most would have a hard time raising funds. Also, because it is an alluvial with no engineering study ever done, most companies shy away. >>I do not buy the arguement that it is because the POG and the state of the junior market why they cannot get funding. Good projects get money in any market. Any thoughts<< Well I would certainly not agree that it has no effect. Even large mining companies are being impacted by the state of the market. Some of these companies are dropping very good projects because of it. Also, they may only raise a portion of the desired amount or it make take much longer to raise. With that said, I do believe that a very good project, and should be financable even now. Especially a project that is potentially as profitable and risk diverse as this one is, where you could probably show positive cash flow from any one product, by itself. That is the one of the main reasons why the initial Bateman study is so important. If the study is as positive as I think it will be, raising the necessary monies, should be much easier. Rich