I love the Michelle Property but there is no way that we will garner the funds to accomplish any significant advancement of the property solo. The company has been talking about finding a JV partner for some time now, but to no avail.

From the latest MD and A:

"The Company recorded administration service fees of $668,000 (2009 - $596,000) to a corporation controlled by a director of the Company. The charges were made under an annual renewable agreement for services and cost recovery. The agreement can be terminated by either party with 30 days notice.

Subsequent to year end, the agreement was re-negotiated to reduced fees of approximately $25,000 per month and is cancellable without notice."

So that is excellent that the administrative fees have been reduced substantially (by greater than 50%). Now the annual fees should amount to only ~$300,000.

Also from the MD and A:

"During the period from December 1, 2010 to March 30, 2011, the Company:

i) Closed a private placement for 2,120,000 units at a price of $0.15 per unit for a total consideration of $318,000"



Great, that should cover the annual administration fees!

Oh wait, seems that they have added another property to the stable as of today! Can anyone please explain to me their strategy? Are they aiming to employ the project-generator model ?

Cheers, Luker

Disclosure: I hold ~ 30,000 shares (which are underwater > 50% despite considerable cost-averaging)