Spider Resources

The exact exchange ratios are not yet fixed, so we can't predict the exact number of fully diluted shares outstanding for the amalgamated entity, but 1.5 billion would seem to be on the lower end of the range of possibilities. A 4 or 5 to 1 consolidation would be the minimum I'd like to see, to tighten up the structure before the next round of financing. The earn-in potential to take it to 60% ownership requires a full feasibility study, and that will require both time and hard cash. Neither corporation presently has a hard cash reserve of any significance, and the flow-through cash would be long gone on drilling and such.

Lar