This is an excerpt from BUSINESS WEEK Magazine
Resource Capital Funds is a venture capital and private equity firm specializing in investments in buyouts, development capital, rollup, and distress situations. The firm does not invest in oil and gas sector. It typically invests in opportunities that arise due to corporate financial issues and not project related technical issues. The firm also provides bridge loans and credit support. It invests in all hard rock mineral commodities and in mining companies. The firm seeks to invest in junior mining companies with projects at the scoping study or pre-feasibility stage. It seeks to invest in Australia. It seeks to invest up to $500 million in a single transaction but prefers to invest initially from approximately $10 million to approximately $150 million. It also invests in the form of convertible debt. The firm also participates in equity placements or on-market acquisitions of common stock and seeks to acquire controlling stakes. It seeks to exit its investments between three and five years through merger and acquisition, block sales to institutional investors, or market sales into liquidity and holds minority stakes in its portfolio companies. It prefers to take a seat on the Board of its portfolio companies. Resource Capital Funds was founded in 1998 and is based in Denver, Colorado with additional offices in Perth, Australia; Toronto, Canada; New York, New York; and London, United Kingdom.
Me thinks this group does not plan to stick around and see NOT become a producing mine.
When this is all said and done we will have 3 may 4 major shareholders with an average price of around .50 cents. Who control about 40 to 45 percent of outstanding shares.
My take on this.... if you are not in under a buck, you're not going to be in the money when this puppy gets sold. Please, some one tell me I'm wrong. My average cost $ 1.25.
