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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: m.philli who wrote (1263)	4/28/1999 12:47:00 PM
From: whisky	Read Replies (1) \| Respond to of 2402

Mike The answer is until HLB gives up their stock, we are not going up because the traders will not allow it. Plain and simple, they are waiting until they see the big cross, so they can slip their bids in hopes of getting some stock to trade. This is the question we should all be asking management. Personally, I think this is why certain posters are fabricating negative connotations on this thread. However the fact remains that your overview on the trading patterns is absolutely correct. The traders are in no hurry to have the stock go up until mgmt desires. It is a cat and mouse game right now with the same buyers and sellers on both sides of the game. A box if you like that analogy. But, I will make one further comment. The block trade will occur at higher prices, as I have personally spoke to David Slater at HLB and although he is willing to part with the stock, he is being not about to give it away. He told me that he will not be an active seller under 1.40. Therefore if we want to do ourselves a favor then we as investors should move the stock price up, as the only ones who will lose here are the traders keeping it down. Believe me they will not appreciate losing stock in this winner. Once that occus they will move there bids higher, realizing that the only way to get there position back is through higher prices where Mr. Slater is willing to feed the market. The reason I know this is because Mr Slater told me who he sells through and it isn't Cannacord or global who we currently see on either side of the market. We truly are in the hands of mgmt's ability to close this deal. Hopefully they will do it very soon, because until then they will not deliver us from the bondage of these ridiculous lower prices. In essence we are truly being held captive by HLB's mgmt and not CNB. After all HLB has already made in the area of 10-15 million dollars from this investment, considering that they never paid a red cent for all the shares. These are the guys we should voice our displeasure. Oh and by the way, has anybody recently checked the stock price of HLB, it is also severly undervalued. Games, Games, Games. The only people suffering here are the people who have stayed loyal to this company over the long term, isn't it nice to be so appreciated.

To: m.philli who wrote (1263)	4/28/1999 2:18:00 PM
From: russet	Read Replies (1) \| Respond to of 2402

Mike, A PP is a fast, cost effective way to put money in the treasury and clean up the balance sheet. Taking on debt with loans does not clean up the balance sheet. Why would they want to clean up the balance sheet? If they are purchasing equipment from a third party to start alluvial diamond production costing many millions of dollars and they don't want to drain the treasury completely they will borrow to buy or lease the equipment. That requires a good looking balance sheet to get good terms on the loan or lease,.... CNB now has a good looking balance sheet. Why did SWG take the PP at $.80 and sell the same number of shares at $.75? The net effect of this is to insure a quick PP to get money. Lundin did the same thing when he was trying to get money to continue exploring at ARP to prove up more resources and get another gold company interested in Veladero before Barrick swallowed them up for a cheap $4.00 per share. The price that a broker will demand to accept a large chunk of shares (which they subsequently sell to us) is a discount on the shares,...hence SWG got $.75 per share. There are rules enforced by the VSE that determine the price PP's can be offered for. $.80 was within those rules. Valuation and grade determinations of a resource require large quantities of gravels to be processed (bulk sampled). That's what they are doing now at Rio do Sono. A firm long-term production decision will not be made until that process is finished which will take several months at least I think. Other diamond companies at the same point of exploration include Winspear and MPV in the NWT and Diamondfields in Namibia. They are all in the process of taking bulk samples and waiting for the results before pre- feasibility studies can be completed. The nice thing about alluvial gravels, is they can quickly move from pre-feasibility to commissioning in months whereas pipes and ocean deposits can take years as the costs to mine the latter can be very high. I don't see much difference between the interests of SWG and CNB. They have the same chairman and many of the same directors. CNB is the diamond exploration arm of SWG. Keep the imagination running. Several minds thinking about something, and each doing DD in different ways, and disagreeing about things is what these threads are all about. We should all be forced to flush out our arguments. Everyone's understanding will rise as a result. The above, and everything I say are my opinions only based on the limited information I have. Many people have other opinions, that is their right. russett

To: m.philli who wrote (1263)	4/28/1999 6:13:00 PM
From: Claude Cormier	Respond to of 2402

<<I have a vivid imagination, perhaps it alive and working here. IS anyone else having imaginations along this line. >> Not me Mike. IMO, it is clear that SWG took the PP at $0.80 because they didn't want to dig into their bank account. They had a buyer (whoever that is) at $0.75...so they say we will pay an extra $0.05 to CNB for the warrants at $1.40. As for last fall shares-for-debt exchange, well $1 is not far from $0.80. Maybe they did it at a premium to help the market or to make it easier to go through VSE... I don't know. But does it really matter? I can't see how this differ from you shareholder interests. If SWG's intention was benefit at the detriment of the minority shareholders, they would have try to get the shares/debt swap at market near $0.60. I think SWG/CNB are extremely well managed. If you want to speculate and be exposed to a diamond discovery, then CNB is your choice. If you want more conservative value with diversification to precious and base metals as well as diamonds, then go with SWG. But in both case, I think we have to be patient and trust these guys.