Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Maxam Gold Corp. OBB:MXAM -- Ignore unavailable to you. Want to Upgrade?

To: go4it who wrote (5835)	9/30/1998 10:44:00 AM
From: Larry Brubaker	Read Replies (2) \| Respond to of 11603

Charles, I won't belabor this any more after this post. I assumed the money is intended to pay down IPM's debt. My question is who gets the money? Is any of the debt to pay IPM employee salaries by any chance? Is any of the debt owed to Phoenix/Omega by any chance? The IPM debacle left a bad taste in my mouth between the hype put out by the company (Chickens Coming Home to Roost) and the huge salaries they were paying themselves. Maxam participating in a bailout of IPM makes them guilty by association in my mind because of the following: 1. Phoenix/Omega already ownes the rights to the property and could give it to Maxam for free, without paying IPM's debt. 2. I wonder where the PP money is going. 3. The Ron Struthers b.s. that somehow taking on more unproven dirt makes Maxam a 60 cent stock.

To: go4it who wrote (5835)	10/1/1998 11:24:00 AM
From: BobS	Respond to of 11603

<< What would you think of the merger if the extraction method were already proven and known to work? >> Charles, If that were the case there wouldn't be a need for a buy-out, correct? IPM would still exist and likely would be a thriving company. As for helping IPM pay down debt, didn't IPM declare bankruptcy? What debt exists after declaring bankruptcy? And again, why should Maxam pay off another company's supposed still-existing debt? In a previous post you asked me to think about the business aspects of such an event. When buying another company there are two points that should be addressed - how long is the payback period and what is the schedule of earnings from the investment (ROI schedule) Currently, the payback period is unknown. Maxam shells out money and gets property that has no value today. It also gets procedures, assay results, and recovery results that have no value today. Schedule of earnings is unknown. Maxam does not have any idea when it will be able to obtain profit from the IPM land and/or processes. To date, they are both unproven. If it were my company I think I want to work with some known payback and ROI numbers. Certainly, Maxam could know something positive about IPM that we don't, but we've been waiting for such unknown positive information for all these DD companies for about 2 years. I'll believe it when I see it. As for who owns Maxam shares, I honestly can't say. I thought I had a Maxam prospectus but it turned out to be Windstar. However, I seem to recall Runyon owned something like 46% of the shares in Maxam. There was a big deal made earlier in the year of his big ownership in the company. If you have the figures, could you post them? bobs.