From my foggy recollection (sorry was too lazy to try to research where /when I read same), I believe Aurcana mentioned something about producing / selling silver coins / bars from Shafter?

 

Although not a novel concept, I think it would be a great initiative for several reasons and I wholeheartedly support it.  

 

On that note, (and indirectly related to the issue of sp protection via dividends... as suggested and explained on numerous occasions by Matt), I think issuing Aurcana-made silver coins/bars to shareholders would a sensational programme worthy of serious consideration.

 

The down side of dividends is that once you begin issuing them it is a strategy you are best to continue. In other words, it can become a long-term commitment. Not that going long-term is bad, but it may impede nimbleness and flexibility, especially if the company is looking at using its cash to expand... 

 

The suggestion of silver coins/bars is akin to salary bonuses. It is much easier for any company to issue bonuses rather than amortizing the same amount of money through higher wages. The rationale here is that in tough times, the bonuses can be reduced (even eliminated), whereas reducing salaries is far more difficult and much less palatable. Secondly, until you pay out the bonuses, the extra money is available as cash flow.

 

The above mentioned analogy is that issuing dividends would be a commitment, whereas issuing Aurcana-made silver coins/bars can be spontaneous and without future obligations... Yet to a certain would also protect the sp.

 

Practically speaking, issuing silver coins/bars would prove a little more difficult for the company than issuing dividends. However, these logistical challenges would be easy to overcome and should never be cause to dismiss such proposal.

 

The methodology in which to proceed could orchestrated in a wide variety of ways and my suggestion to best develop this venue would be to “start with the end in mind” (Dr. Stephen Covey). Just figure out how much you want to spend on this initiative (the why has already been covered), then work backwards to work out the terms and details.

 

Here are a couple of examples:

 

A)

Aurcana decides to spend 15 to 17M on this initiative.

 

Aurcana would issue a notice of intention to all shareholders that Aurcana-made one-ounce silver coins/bars would be issues to its shareholders.

 

The notice would reveal that an Aurcana-made one-ounce silver coins/bars would be issued on a one to one thousand ratio basis (1:1,000).

 

Shareholders would be issued Aurcana-made one-ounce silver coins/bars at the equivalent ratio rate based on the number of shares they own at the time of the notice.

 

In the above example, a shareholder with 100,000 shares would be issued 100 Aurcana-made one-ounce silver coins/bars.

 

Aurcana would need to produce and set aside about 550,000 one-ounce silver coins/bars for this initiative.

 

B)

Aurcana decides to spend 15 to 17M on this initiative.

 

Aurcana would issue warrants to all shareholders on a one to five hundred ratio (1:500)

 

Shareholders would be issued one warrant for every 500 shares they own.

 

The warrants would enable the warrant holders to purchase Aurcana-made one-ounce silver coins/bars for $15.00 each.

 

In the above example, a shareholder with 100,000 shares would be issued 200 warrants. Each warrant would enable him/her to purchase 200 Aurcana-made one-ounce silver coins/bars, for a total of $3,000.00

 

Proceeds from the sales related to all the warrants would generate $16,500,000.00 to Aurcana!

 

Aurcana would need to produce and set aside about 1,100,000 one-ounce silver coins/bars for this initiative.

 

The above suggestion of issuing of Aurcana-made one-ounce silver coins/bars to shareholders (regardless of the method chosen), would not affect nor interfere with the company’s concurrent operation.

 

Notwithstanding the details of the above “examples”, would you not agree that this would be a great WIN-WIN strategy?

 

As always, would like to hear your thoughts/comments...

 

Cheers