Thanks to w6w for pointing this out to the board some time ago...

On Jan. 24, 2008, Lucrum Capital (LRU.p) announced its intent to acquire Sheltered Oak Resources (SOR). Lucrum Capital has been halted ever since but has released additional details re: RTO on June 2, 2008. SGX longs should check out these NRs. Why? Because as per Feb. 8, 2007 SGX NR re: 'SGX Options Kerrs - Plans to Drill'... SGX was issued 180k shares of SOR with an option to purchase 500k shares of OAK as part of the option agreement. The relevant questions are... how many shares of the new combined LRU/SOR company will this translate into and what will they be worth? I have done some estimates... if you need clarification of where these number come from please see applicable NRs... I have ignored options and warrants as most of these will accrue to SOR...

Pre-RTO: LRU has 6.9 million shares out (includes $1M PP; 2M shares SOR, 500k to LRU) and SOR has 2.8 M shares out.

Post-RTO: @ conversion rate of 3.7362... SOR has 12.8 million shares (72%) of combined company.

Share structure of LRU/SOR (17.8 million shares out): LRU: 4.2 M; SOR: 12.1 M; SGX: 670k...

BUT... SGX also has right to purchase 500k shares of OAK... this would translate into ~1.8 million shares of combined company.

Thereofore, SGX could possibly own ~2.5 million shares (670k + 1.8M) of combined company (i.e. ~13%). Siginificant investment IMO.

PLUS as per Feb 8, 2007 NR SGX will be operator responsible for all prospecting, exploration, development and mining operations, will receive 15% exploration expenditures as management fee, AND will have a “Back-in Option” which will allow Sage to maintain
operating and ownership control of the Kerrs property. Looking forward to more details from mgmt. Either way this will be a favorable agreement for SGX.

Again, according to and thanks to w6w, combined company should begin trading soon. Kerrs drilling to start immediately.

Just my estimates. Comments welcome.

red911