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Message: The pup's day in the sunshine

The pup's day in the sunshine

posted on Dec 03, 2009 01:13PM

Rising volume before the private placement (PP), then price falls to non flow-through price of PP (with loss of open market buyers who become PP buyers), plus a little dilution, then the stock price (SP) rises to the flow through price of SKP's PP at $.47, and now I would expect SKP to outrun SGR for a while. This $5,000,000 PP was a huge accomplishment for SKP's management and PR team. They had to sustain the $.40 to $.50 SP range prior to the pricing of the PP in that range, and they got incredible help from SGR's exploration success. SGR's management chose to go for new , high grade ore to make a real, operating, gold mine out of this, rather than feed larger 43-101 figures to the analysts to goose their share price a little. I think this decision occurred about the time they hit the hinge zone, and had the opportunity to define some, really, highgrade ore for production, or do redundant 43-101 drilling for the analysts. THey chose to ignore the 43-101. If not for the decision to use the drills for new exploration, I think SKP's SP would be lower,and SKP would be doing a much smaller PP at a much lower price).

L believe that the agreement with Wildcat Exp. on the strikepoint property, allows a buy in by Wildcat to get 30 or 33% of the action back, but it, also, allows Strikepoint to, in addition to their $5,000,000 or so exploration milestones, to pay another $1,000,000 cash to Wildcat in year 5, approx., to regain 100%, less a 2% smelter fee to Wildcat.It might seem, now, that Wildcat gave Marum a great deal, but a couple of years ago, the hinge model of the golden fairway was either non existent, or not so convincing, gold was down, financing and credit were nearly impossible, and Wildcat had a lot of other land on the fairway. And, how was Marum to come up with $5,00,000 plus to perform on their part of the agreement when their SP was, often, between $.05 and $.10/ share.

SKP has to drill some major width's and grades,and that is not a free kick with a hometown referee, but SGR is contracted to match SKP dollar for dollar after SGR puts up some starter money for the drilling. I would think that any money SGR spends on this is a credit towards SKP's exploration expense milestones with Wildcat, which would mean that SKP's $5,000,000 if spent on exploration would trigger another $5.000,000 to be spent by SGR, all $10,000,000 of which would be a credit toward the exploration expense milestones with wildcat. So, this $5,000,000 raised by SKP is a HUGE, HUGE deal, that has caused minimal dilution, and provides more than enough money to completely, fulfill the Wildcat obligation, including the final buyout of Wildcats potential 1/3 interest for a million $ CASH.

I would like to see some long drill cores with visible gold on the SKP website, but we won't have that privilege at $.47 a share.

John

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