Interesting thought CJR, and maybe well founded. The volume is very low and doesn't tell us much. If this news triggered a strong buy then it is possible that house 7 would sell heavy into the ask, to liquidate a large position..........we just don't know as there are no willing buyers at this price.

You observation about warrant holders is interesting. There are several people who would be very pleased if warrant holders got stiffed here again. This presents a bigger long term problem for our company. It can create the house 7, type of shareholders, who may well be a warrant-holder who has lost faith that the company value's their investment.

Keep in mind that exploration companies have only one reliable source of funding and that is through PP's. Since most people don't qualify to become PP participants under SEC regulation, this is a fairly small group of investors. Our little company has now twice miscalculated the effect of their actions on this investor group. First time was when they were offered a PP at .55 and turned their nose up at it......then struggled to do a pp at .35 a few months later. More recently, the company chose to not extend the warrant period in Nov/Dec 2011 for early pp participants and then was stuck doing a pp at .10 in January 2012..........below the amount the warrants were valued at.

What is the effect of this?

I myself chose not to participate in the January pp for two reasons. 1. the company did a nr indicating a full warrant and then changed to a half warrant....and 2. the fact that two months prior they had missed the opportunity to treat warrant-holders in a way I thought they should be. (I didn't hold any of those warrants so there was no conflict of interest in there for me).

This type of thing can leave a shareholder, who is there as a financier and usually a larger investor, disallusioned. This can create a "sell on news" type of investor who destroys any momentum and hurts the companies growth potential. That lack of sp appreciation means future pp's are done at lower rates and create far more dilution.

Think of it this way.........you constantly borrow from the bank and then you never pay them the interest on the money..........! How long do you think they will keep lending? How long before they call their note?........house 7 may be calling their note.

The company could do itself and its shareholders a huge favour by granting a short extension to warrant-holders in the May 6th round. If they post market moving news just after the warrants expire, that would be a very bad sign to future lenders and would be the theoretical "strike 3" to pp participants.

To be clear, I am a party to this next set of warrants. I definitely have a conflict of interest.

The next set of warrants could greatly help our treasury. I trust our BoD will see this as an opportunity to build both the treasury and lender trust. I trade through house 2 and annon and not house 7.

Great news release today imo!

pc