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Gold/Mining/Energy : MIRANDOR-MIQ ON MONTREAL -- Ignore unavailable to you. Want to Upgrade?

To: saul mikaliukas who wrote (2380)	1/19/1999 12:12:00 PM
From: Chad Barrett	Respond to of 2635

saul, I know that this form of investing is akin to gambling. However, with MIQ I believe that you are dealing with one of the more respectable junior mining companies. - they found a legitimate property - they did enough work to bring in a major as a partner to develop that property - they have NOT issued an excessive amount of employee stock options at low stock prices - even when they did have a need to do a PP when the stock was at a low price, they only did it for a small amount (to not cause unnecessary share dilution) I must admit that I am curious what this money is going to be used for, but I don't see it as excessive. BTW, I don't currently own any MIQ, but I hope to buy some soon as I do believe it has a great chance to rise substantially from this level once more news is released from the drill program, etc. Chad

To: saul mikaliukas who wrote (2380)	1/19/1999 1:26:00 PM
From: Philip Nolan	Respond to of 2635

Hi Saul, Why don't you take a closer look at Mirandor's most recent financial statements. You might understand why Mirandor has a "need" to do a private placement. As of the end of the third quarter, Mirandor had $209,669 in current assets and $384,918 in current liabilities. That's a $175,249 short term deficit at the end of September. If they spent money in the fourth quarter at the same rate as in the first three, that deficit would be $104,024 higher or $279,273. As to whether Mirandor should be spending so much money, that's another question. What I will say is that "investors" as a general rule have no idea of how expensive it truly is to run a public company.The Montreal exchange has annual fees, lawyers charge for their regular dealings with the exchange and securities commission ( do you think that Mirandor's lawyers reviewed the joint venture agreement for free), accountants have audit fees, Mirandor has its own geologist(s?) on site assisting Kinross.All these expenses add up quickly. Most of us believe that Mirandor has an excellent prospect with the Railroad project. However, what if it turns out to be a dud? I fully expect Mirandor's management to be actively seeking other investment opportunities. I believe that these constitute an important part of Mirandor's expenses over the last 1-2 years. Under the Quebec Securities Act, the minimum private placement to a non-insider is $150,000. I'm quite pleased, given the current debts, that they only raised that $150,000.(Generally these shares are escrowed for a year, so this is no quick flip to a buddy of the president) Like the rest of the followers, I'm quite anxious to get the results, however I realize that the company incurs debts in running its operations and accept that the only way to raise that money is to issue shares. Philip