(Got the letter below from Mr. David Greenway).
Dear Fellow Shareholder,
This letter is being forwarded to you in furtherance of our press release of Friday, July 9th, in which we announced a proposed consolidation of our Company’s share capital on a 1 new for 10 old basis and a proposed name change incidental to the consolidation. The proposed name change is a TSX Venture Exchange requirement intended to eliminate any confusion which might arise on an exchange of either new or old shares following the consolidation pursuant to a sale of shares through the facilities of the Exchange.
Management believes the share consolidation is in the best interest of Company going forward, for a variety of reasons which I will discuss in this letter.
Recently, our share price has declined to a level which may impede future financings. Under Exchange rules, future financings may be arranged at a 25% discount to the market price but in no event, can a listed company offer shares for sale at a price less than $0.05 per share.
The reason for the decline in our share price is a situation being experienced by many peer companies in the junior resource sector during volatile economic times.
Our Company is reasonably well capitalized and managing some excellent assets. For example, at the Golden Rose project, our Company returned some very high grade gold assays. In addition, the Crescent Mine is being significantly advanced by our partner United Mining Services, Inc. The current turbulent markets appear to ignore any inherent value attributable to these ventures.
Given the volatile market conditions, our Company cannot risk any further market declines that would impede future financings required to advance our exploration portfolio of properties. At this point in time management feels that it is not in the best interest of shareholders’ to wait for a market correction to reflect the unexplored potential of our Company’s assets.
Management believes that a pro-active approach to a corporate reorganization in these difficult times will allow our Company to take advantage of the knowledge that has evolved through this year’s exploration program, on the Golden Rose project from drill data and analysis recently completed. Also, a consolidation will leave our Company in a position to take advantage of other opportunities that may be presented to management as we move forward. Management believes that it should act and not wait for a possible market correction as non-action will be detrimental to long term shareholder value.
I personally value and encourage input from all our shareholders in this process. If shareholders have positive and constructive thoughts on the alternative to a consolidation, please forward them along to our Company. All communications will be reviewed thoroughly and where possible, incorporated into the business development process.
It will certainly be necessary for our Company to raise funds in the near future. If anyone is interested, please indicate your interest as soon as possible by contacting us at your convenience.
Regards
David Greenway
President of SNS Precious Metals Inc.
