Considerations I need help with

Highly prospective exploration company

Resource projects cover more than 1,713 km2 in three provinces at various stages, including the following: hematite magnetite iron formations, titaniferous magnetite & hematite, nickel/copper/PGM, chromite, Volcanogenic Massive and gold.

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Considerations I need help with

posted on Oct 13, 2011 02:24PM

CONSIDERATIONS I NEED HELP WITH

I think we are now getting close to the time we start talking about this.

1) In my lengthy conversation with Smith post (of which I accedently posted 1st draft with all it's grammar errors like "there" instead of "their"), he discussed the reason a Major would prefer to buy into production "outtakes" rather than buy out FNC. If a major buys into Magpie production outtakes, how will that help my individual portfolio? advantages/disadvantages? Same question with CHM/FNC Fermont? Attention, more investors? Why would it increase the FNC SP? Why did Cliffs buyout Freewest and Consolidated Thompson, why not buy into production?

2) Once Magpie does an IPO NOV/DEC. How does this process work? Is shareholder direct ownership a mandate? Obviously, we all want to know how it will effect our wallet. Will big money buy into FNC or Magpie shares. Is a percentage reserved for public and percentage for a major to front cash for production. If a percentage is reserved for Major, the larger the investment the more dillution devaluing individual shares,or does the new company simply issue less shares mainating individual share value? If anyone has gone through this? Would you talk about what we can expect? Reference links as well.

3) We've seen the result of an NPV excitement from CHM's 1.5bil anouncement. I expect we'll see it again, when it doubles in Nov. Does a major buying into Fermont or Magpie consider this, or yearly minieable tonnage, or current SP? For example, if a Major were considering Magpie, surely they'd want to know share structure of the new Magpie, Inc. Or at least overall percentage leverage of their investment. If Smith and Granger are shopping around for Magpie, they've got to have some figures in mind. It would be nice if we retail new the figures as well.