There is an inherent risk to WEL because of the relative valueations of SKP and WEL and SGR

For instance WEL could become a target if SKP doubles without WEL making an appreciative move. That is SKP has to raise $5,000,000 in the next while to do the work.... Lets say the stock moves to the .60 range and a 50 cent financing is arranged

Now if they raise $5,000,000 this will require a 10,000,000 share placement, the money being used to do the work on WEL claims for 65% of the project....

Thus skp would have 110MM shares out.

In that scenario why not dilute the stock a bit more and take a run at WEL ....if WEL has not moved into a more respectable price range.... IE parity with SKP.

If WEL only moves to the 12 to 15 range the predator in me thinks that diluting an additional amount to take out WEL is possible say on a 1 SKP for 3 WEL shares or approx .20 eq/ share... thus an additional 20MM SKP shares

Thus SKP now would be 130MM shares, but they would now hold 100% of the poundmaker as well as all the other land positions in the area and the other projects.... The extra 20 MM shares would have very little dilutive impact on the upside potential for SKP shareholder

This is the real danger that WEL has from a survival point of view, but shows that the upside is an almost 100% guarantee if SKP continues to gain strength.

The danger to WEL managment is that they hold very little of their own paper and a significant amount of stock is held by SKP investors.... I think the scenario is very similar to the DEV / RGT arrangement where RGT took over the company they optioned the property from. That shows the value of promotion, as the relative value of the project was not attained in the market by DEV.... The weak stock being eaten by the stronger well supported new jr that had investor support to aquire the whole project.

I figure our high priced managment needs to recognize the danger WEL is in of loosing their whole suite of projects should this imballance continue....

Now consider the relationship to SGR...... If I was SGR why not take out WEL on a share swap as this additional land position almost ties up the whole belt....This would only take a few milion shares to accomplish even with a very generous offer say 1 SGR for 12 WEL which would equate to .23 / share and only dilute SGR by 6 million shares

Wheres the upside potential.... and miniscule downside risk....... WEL

WEL dosen't have to do anything to tag allong on SKPies coattails...and the share price will tag along at a discount to SKP...But they run the risk of being eaten if the relative valuations are this far out of sync.

This is a risk that is not being addressed by managment in not aggressively promoting the company. As a bare minimum they should have the SKP news release detail the terms of the JV agreement as the perception in the market is that WEL has given the project away, when in fact they have a carried 35% intrest untill the terms have been met, and then they have the option to contibute and retain that 35% intrest going forwad.

JMHO