Hi Cedar!

As the total number of shares issued for KXL grows, you want to be able to attract institutional money to the story. Pro management is less likely to make a dumb decision with their holdings. So in essence you take shares off the market and lock them into long term storage as long as the company can generate value. Also, having institutional support is a validation of a biz plan, since there are usually full time research departments involved before a player will step up to buy a large chunk of anything. Some form of analyst coverage is also a bonus.

The downside is that when a fund decides to lighten up, then it can tank the market for a stock until it is done selling. And something as simple as one fund manager moving on that is replaced by another individual is often all it takes to blow out a big position.

With Sprott, the added buzz from a firm that has a reputation of making great buys among the junior miners is another bonus. People know that Sprott is a sharp cookie and they may buy what he buys just on that reputation. So it is a feather in the KXL cap to have him on board. Sprott also has a reputation for staying with an investment choice for a long time to give it the chance to perform.

cheers!

mike