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Message: cost of splitting SMH

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Re: splitting SMH may or may not be good

posted on Oct 31, 09 11:08AM

Digger Dog. My father and Grandfather were Trustees in Bankruptcy and I'm sure they would get more then 0.05 cents on the $ for Ontario. As I said it could be $ 1/2 million if you do it with a full IPO,but there are many ways of doing a split of the company into two and yes it may take some time ,but that does not mean work on the properties has to stop . Field people do not have anything to do with a split.The idea is to give a maximum amount of value to the shareholder.

Next there is no point in having a small mine in Guyana you want to create a big ore body because they will be open pit. You have to find out the size of the ore body to design the pit .If you take what Kilborn has and start with that you may end up missing a great deal of product and in truth open pit is enconomical when it is big not small unless it is really high grade. And they are starting at the end of the year to do the alluvial mining on Marudi--so there is your mine.

You have two stand alone entities -.Gold in Guyana : Moly ,Uranium,Silver and possible Rare Earth in Canada . They are two different BEASTS and by separating them you will attract two different investors and that will be a benefit to the current investors.

What the Management of SMH has done when things were tough [ All juniors got their share price wacked and also SMH had to negotiate with the natives on top of it all ] is alot of work to make the co. better and now it is time to go forward on both fronts

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David Bending
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November 05, 2009

Discussing the latest developments on the Five Star Property in Guyana

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