I'll write a more detailed post, as I have 4 pages of notes to pour through this evening, but the important points from the meeting are:

1) We will require short term financing of $5-$10 million to bridge the next few months until we reach full production at McWatters in Feb 2009. We are currently running around $1-$1.5 million per month negative cash flow.

2) Pre-production results from McWatters ore this week have been excellent. The ore is processing better than expected through the flotation circuit and we are achieving an 87-88% recovery on the low grade ore. This is considerably better than what was expected for this low of a grade ore.

3) At $10 nickel, it will require 275 days to pay off the loan to JJNICL. At $8 nickel, it requires 344 days. Below $8 nickel, we will require a different financing to carry the balance as we will not be able to pay back JJNICL under our terms. Gary squirmed a bit when I questioned whether we'd lose our mill as collateral on our loans, but he seemed confident that we could renegotiate new terms with JJNICL as they "want our concentrate".

4) Most drilling/exploration on hold right now until we strive for full production from McWatters. We don't have the cash for it right now.

5) Hostile acquisition fears: Very real and certainly something to keep in mind. Hopefully our shareholder's agreement will keep a hostile acquirer away and our shareholders will not agree to a low buyout. (right, where have I heard that before)

All in all, Gary did a fine job of honestly presenting the company's current situation and its future potential. Everything is hinging on nickel prices right now. Gary feels confident that we'll see nickel above $10/lb next year and if that occurs, we're in for a great ride. If nickel turns the other way and reaches down to $7 or below, it'll get real dicey.

More later once I have the time to write these 4 pages of notes in to something coherent.