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

To: Brumell who wrote (546)	1/29/1999 8:53:00 PM
From: Thomas A	Respond to of 5821

One thing to consider is the NVE news release of Aug/14/97. It may be part of the missing link. These guys might be closerrrrrrr!....than one realizes.

To: Brumell who wrote (546)	1/29/1999 9:19:00 PM
From: Thomas A	Respond to of 5821

Sorry B. Should be April/14/97. I read that thing three times to see if there might be any other link. I forgot NVE had brought him on board. Together with Puskas there is a lot of knowledge and experience. It will be interesting to see how this unfolds.

To: Brumell who wrote (546)	1/29/1999 9:26:00 PM
From: Serge Collins	Read Replies (3) \| Respond to of 5821

This is a good deal for Nuinsco, anybody that thinks otherwise either doesn't own the stock or hasn't seen many private placements before. Tell me the last time you saw a private placement done at a price that equals the going market price? The ARP case is a poor example for comparison, as you have a situation involving an exceptional factor at play. These private placements are always made at a price based on a formula of average price over a number of trading days prior to the agreement being signed, minus a certain percentage of this average price, which is a cushion to protect investors from various factors (price volatility, length of time you must hold before being allowed to sell, etc.). At $2.00, present shareholders have a good deal and the company gets the needed funds to continue its drill program. Anyone who doesn't see it this way simply doesn't understand private placement financing or is not being frank about their position vis-a-vis this stock. Have a good weekend.

To: Brumell who wrote (546)	1/29/1999 10:13:00 PM
From: Rocket Red	Respond to of 5821

Brummel If First Marathon Says its a 2 Dollar financing ' You can bet its a done Deal. I have An account At FT and we see if I can get in on the Financing on monday.Will let you know.

To: Brumell who wrote (546)	1/30/1999 2:09:00 PM
From: BLZBub	Read Replies (2) \| Respond to of 5821

I've never seen this "subject to increase" clause invoked in my 8 years of jr. mine investing. It's just not that complicated to put together a prospectus for a jr. explorer. Flow-thru financing allows a Canadian tax payer to deduct the full amount of his investment off the top of his income. Hence if your marginal tax rate is 50%, a $10,000 investment only costs $5,000 after you get your tax return back. On the other hand, when you sell the shares, your cost base is zero for capital gains purposes. So if you sell the same shares for $2,000 (an 80% loss), you actually incur capital gains on that full $2,000. The company must use the funds for exploration in Canada (i.e. not working capital, land acquisition or foreign exploration). Usually you see the flow-thru deals occurring in Nov/Dec because the taxpayer gets his refund sooner. My opinion is that NWI didn't want the assistance of a major at this point. So far, this deposit doesn't appear to be very tricky and I don't think that the INCO experience was a good one (see post #21). The price of the offering is not such a deep discount to market. I would rather pay $2.40 for shares that can be sold before any particular drill result, than $2 for ones that must wait for most of the story to be told. A big investor, however, can't buy $5MM worth of those $2.40 shares because he'll quickly push the price up to $4 or more. At the same time, he can't easily sell all his shares immediately prior to a drill result. Bill.