I'm in the camp of being pissed and happy at the same time. In recent talks to RM about our cash position I was assured Kry wanted to keep the dilution to a minimum. We have about 300 million/ 340 million fully diluted shares prior to these deals. Add in the CRRC shares at .40 for the noteholder help and 19.9% at .40 to this PP of 70 million plus over allotment tp 80.5 million shares that carry a 1/2 share warrant. We have serious dilution!

My math says the 80.5 become 120 million shares once the warrants are used. I'm guessing that ounce the equipment and other assets Kry gets credit for in the CRRC deal we will see CRRC convert about 50 million which means about 125 million shares. In keeping with the 19.9% rules I'm guessing we end up with 600 million shares of which CRRC has just under 120 million shares.

Here is what I hate!!!!!!!!!

Instead of owning 100% of the MOC for 25 million ounces with 300 million shares we now have 33% of the 25-30 million ounces with 600 million shares. We just got the biggest screwing of our lives after waiting 10 years for our pay day.

Here is what I like!!!!!!

We owned 100% of a MOC that was apparently never going to be honored by VZ forcing us into arbitration. We would have had to dilute our shares anyway to get the money for arbitration. If as TET suggested the bought deal gives us arbitration money should everything fall apart we would have had 400 million shares and a wait of 5 years hoping for 2 billion dollars but settling on 1 billion or $2.50 a share.

Instead of waiting for $2.50 a share we own 33% of a JV company that will be mining LC. This company is lead by CRRC who has the political and financial clout to tell VZ how things will be. I would imagine this new JV would be considered the partner of choice now.

LC will have their resources update in due course showing 30 million plus ounces of gold. Our 33% is 10 million ounces which should translate into a profit of around 8 billion ($1200-$400costs). Even after taxes we will have between 4.5 and 5 billion or $7.50 a share in profit. Put whatever multiple you want on a gold company that has $7.50 a share in profit and you end up much higher than settling for $2.50 a share.

This JV company is now a world class gold produced. This JV now has the ability to expand and take on new projects in VZ as well as other country's. In the end will we see our shares worth a lot more than they are right now. I wanted out of VZ ASAP but now I may be prepared to stick with our partner CRRC.

JJ