I am pleased that UC is prioritizing the close-to-production assets in Mexico and I am sure that there was some influence in this direction by Sprott, Rosseau, Pinetree and Firebird.  I recall that this $4.2 million of financing was placed at $0.45 so these guys are down 15% right now.  There is also the $700K of private money acquired by the non-brokered private placement on 10/31.  I understand that both of these rather large investments are subject to a hold period = 03/17/2008 and I am sure that these investors want to be in a profit position by then. 

I suspect that they are looking to the original business model that Jim and the new regime have endorsed.  Specifically; cash flow from La Yesca and new drill hole results from La Soledad.  I also suspect that the new regime is conscious of the share dilution that has occurred.  We all need this Mexican cash flow to keep the coffers replenished and prevent further share value dilution. 

I read on this forum that Neil Novacs and Norman Brewster formed Billiken Management Services Inc. and that Neil is the president.  (I believe that Brian Newton is the president but I digress) Jonny boy noted that Billiken entered into a contract with Spider Resources Inc. and joint venture partner KWG Resources Inc. to manage all exploration activities of the KWG/Spider joint venture in the capacity of "appointed manager". (11/29)  Billiken is also the managing company of the drill activity on the Noront Property and will continue to provide complete and comprehensive geological services and management of all exploration programs for UC Resources as they have in the past year.  So our friend and ally Mr. Novacs is perhaps the most knowledgeable person involved in the JBL play 

The James Bay play has become very interesting to players at every level and now the majors are escalating their sniffing around.  I understand that the first phase of the new aerial survey is complete, so there should be some rumor if not news evolving out of that. Now that UC has cash from these private placements we are in position to meet our 55% buy-in commitments comfortably.  From my perspective, this is a key negotiating factor and allows UC to deal with all suitors from a position of strength.  I would not be surprised if the entire JBL area is sold off to one the Major majors during 2008 and that Neil Novacs and others are instrumental in making that happen. 

That should leave us with hard cash on top of cash flow. At that point we will need the expertise of a guy like Michel Roy who has a great deal of experience in Mexico (McMoney 11/29).  (Billiken is also involved in Mexico as they are preparing to start a phase 4 exploration program on the UC Copalquin project.)  If UC divests of the JBL play, the Mexican assets will need to have measurable value by that time to keep UC afloat with future prospects and potential. 

So, in summation it appears to me that these moves are strategic and were likely conceived before Hamelin departed.  His connections input and direction on the JBL deal alone was worth his salary and bonus IMHO. Putting all of these pieces together is an impressive accomplishment.  At this point I believe that we have the properties and the people in place to make this a great success story.  I am looking forward to McMoney’s post of his review of the MD&A and Financial Statement and his questions for Mr. Dlowry … and a series of positive results in NR’s from UC to celebrate.  

And ROI