Jerry, I expect after the reverse split our new company will be trading north of a $1.50 a share. In past reverse split examples the stock of the company involved has dropped 10 to 20%. In Glencairn’s case, things may turn out quite differently. My reasoning is the price of gold and the building up of positive sentiment towards the gold equities in general as well as the obvious growth story from Glencairn. 

You make a good point of the staying power of the institutions. The reality is, they are adding to their position daily. http://www.thomsoninvestortools.com/component/firm/aol/view.asp?uid=stocks/ownership&country=US&tier=default&symbol=GLE  

The total number of shares will have the same market value immediately after the reverse split as before it, but fund managers that are restricted from investing in companies trading under a $1.00 a share can now introduce Glencairn to their investors. In addition with the new fund managers on board, increased media coverage will soon follow.  With gold hovering around $800, folks all over the planet will be looking for growth opportunities in the gold sector.  

Glencairn will be looking quite attractive in this regard. Think about it… we are currently producing 40,000 oz annually at $400 cash cost and gold clearing $750. After the split we will have less than 60M shares outstanding.

I have the same suspicion as you do about Bellavista. I believe Bellavista will be back sooner than the market is telling us. Let us estimate Bellavista opens in Q1-08 with an additional 50,000 oz annually and $400 cash cost. This is what the market will jump all up and down over and our leaders are well aware of this.  

Before Bellavista shut down, Glencairn’s market cap was just under $150M with gold at $600 per ounce.  

As for Yamana and my last conversation with Dennis not one share has been sold. Peter Marrone CEO and president of Yamana is from the same school as our own Peter Tagliamonte and Bruce Humphrey. These guys are building up for the public mania gold run which should take place before the end of this decade. Have you noticed how our new leadership along with Yamana’s leaders have refused to hedge or sell forward their gold to satisfy any kind of gold loan? I am confident there were many banks lining up to lend us the $25M when Peter was recently in Denver. Our leaders politely said no thanks. I am from the Jim Sinclair camp and refuse to invest in any management team that so much as thinks of getting involved with a bank loan and forward sales before this gold run is complete.  From my discussions with Glencairn and Yamana, there is no denying these professionals are firm gold bulls.

My expectation is Bruce Humphrey will surface after the company has a new name.  I am also enthused about the name change; naming your gold mining company after your favorite golf course in Ontario doesn’t quite cut it.  

I firmly believe in less than two years, our new company will be trading just shy of $20 a share. For me two years is a “spit in the bucket” to realize this kind of return.