A Canadian mineral exploration Company
Focused On Exploring For World Class Gold & Base Metal Deposits In British Columbia & Diamonds & Industrial Minerals In Alberta
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Message: Potash project - keeping some of it and raising cash.

Bob_goat
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Potash project - keeping some of it and raising cash.

posted on Aug 12, 09 02:53AM

Just my thoughts on this --

When Freewest spun off Quest, with all their uranium assets, FWR shareholders were given Quest shares as a sort of bonus or dividend; I think it was something like one Quest share for every ten FWR shares you owned. Then you could buy one more Quest share for cash, for every one you were given. In other words ordinary retail shareholders took part in their IPO. Didnt have to have lots of money, or Net Worth, like for most other IPOs.

Freewest exchanged the uranium assets for Quest shares also, so shareholders kept an interest through that as well.

Some Quest shares were distributed to the Big Boys also, like in other IPOs, but I think ordinary shareholders were quite happy with the way things worked out.

Freewest didnt lose any value by this, since their shares werent diluted by raising cash to explore the uranium claims

Seems to me GRZ intends something similar - raise cash ($5million) to explore the potash claims, while not diluting their stock. If good deposits are found, more cash will be needed for development, and at that point it will be the Potash Co doing it. As QQ Girl said, even a small interest in a very big asset, like a potash mine, is way better than 100% ownership of something that is going to cost a lot to prove up and develop.

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