cedartree:

As w6w has said SGX did not purchase these 672k shares of LRU. They were obtained when SGX optioned 55% interest in their Kerrs property to Sheltered Oak Resources (SOR). See NR dated Feb 2007. As per this NR... the terms of this option agreement seemd very favorable to SGX... i.e. SGX remains operator responsible for all prospecting, exploration, development and mining operations; SGX will receive 15% exploration expenditures as a management fee; AND SGX has a 'back-in-option' which will allow SGX to maintain operating and ownership control of the Kerrs property. In addition, SGX still owns 45% of Kerrs property plus and SGX has option to acquire significant shares (i.e. 13%) of SOR (now LRU) at significant discount.

Since this option agreement was signed there have been delays/work to be done... SGX and SOR signed an MOU whith TBA. This was a very important agreement for SGX and SOR re: further exploration and development of Kerrs property. Then SOR decided it wanted to go public and did so thru amalgamation agreement with LRU.p... an existing publicly traded company... rather than start from scratch... a much easier way to go public. Therefore SGXs 180k shares of SOR became 672k shares (3.72 conversion rate) of 'new' LRU company. Similarly, SGXs warrants to purchase 500k shares became warrants to purchanse ~1.8 million shares for just $500k. The 'new' LRU company is very tightly held and SGX could own ~13-14% of outstanding if and when they exercised these warrants... does not have to be soon... but they will have value either way. If/when significant discovery is made at Kerrs, SGX is well positioned to benefit significantly with minimal cash outlay.

Remember, since all this happened EXS-v has made a new discovery at their Eastford Lake property whicg is contiguous and to the south of previous Kerrs drilling... BUT... SGX has already told us Kerrs drilling plans have changed in light of this discovery by EXS-v. Apparently SOR also owns their own drill... which is very good to know... and they can drill all year-round at Kerrs.

Suprised we did not get drilling announcement last week. Should be this week. Drilling likely started though IMO.

Hope this helps.

red911