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Gold/Mining/Energy : Royal International Venture RIL.V (was Labrador Int'l LAB) -- Ignore unavailable to you. Want to Upgrade?

To: IKE who wrote (590)	4/11/1998 9:15:00 PM
From: Ed Pakstas	Read Replies (1) \| Respond to of 3380

The LAB's gotta raise some capital somehow... After all, they own 50% of the the JV with GBR (25%) and PLM (25%) and are liable for 50% of the the exploration/drilling costs... I guess I should have used a different word than negligible... I'm saying that the value of the shares of any exploration company can't really be determined until they have some proven ground (ie:assets) or cash flow of sorts (ie: from production)... If in fact the company plans to do a PP of 4 million shares at .22 that will raise 880K for the company... If there are warrants attached (and I'm assuming there will be), they will be more than likely exercisable at a higher price (ie: .27), which means another million plus... Not bad if I do say so myself... Just the fact that in today's mining environment, the LAB has the ability to raise said funds, has something to say for itself... Sure it will dilute the company's shares, but what if the LAB hits on a 22% pots and pans hole... Gotta feeling she'll blow the pants off the NAI... Consider the location of the property and the people that will be conducting and determining the locations of the drilling program... Word is that DML/TECK are going to be the contractors... All the company's that are involved in various exploration plays trade strictly on the anticipation of a discovery... The odds of success are a "little bit" better if the properties are located to adjoining ones that have made a discovery, or, to ones that have an expansive exploratory programme on the go... I don't have a problem with this at all... Look at the way GNU is raising money for the NAI program... I'm sure the PLM and the GBR are going to have to do something in order to raise their percentages... Unless of course they all ready have it in the kitty to spend... ...ed