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Gold/Mining/Energy : Naxos Resources (NAXOF) -- Ignore unavailable to you. Want to Upgrade?

To: mark silvers who wrote (15360)	8/10/1998 12:28:00 AM
From: GlobalMarine	Read Replies (2) \| Respond to of 20681

Mark: From the letter to shareholders: <<With this in mind, CPM has developed a list of mining projects world-wide that they may help finance and Naxos could develop. All of the targeted projects are either in full production or pre-feasibility. The advantages of Naxos having a producing property are numerous. It would allow us to generate revenue so that we are not solely dependent on raising capital. This would provide us the working capital to continue our research on Franklin Lake without being totally dependent upon it.>> Sid's game plan, it seems, is to acquire conventional hard rock projects to provide cash flow to continue R & D at FL. The problem is that it's not THAT simple to make money. You don't just get a project and all of a sudden the cash starts rolling in. The company doesn't have any experience building mines, and in order to make a project develop cash flow, you must first INVEST cash. Where is Sid going to get the money? With a share offering or PP? If so, then Naxos will have turned into a de facto junior hard rock mining company with a DD project on the side; in this scenario, FL is no longer the primary focus of the company. Rand

To: mark silvers who wrote (15360)	8/10/1998 1:31:00 AM
From: GlobalMarine	Read Replies (1) \| Respond to of 20681

Mark: I would also add that although I'm not pleased with the apparent shift in focus, I certainly hope that whatever conventional projects Sid undertakes will enhance shareholder value. Rand