Hi Soul Power,


Well, seems we are the only two shareholders in this company, judging from the vast trading volume of 2500 shares and 500 shares traded in the last two days. I also would have expected a bit more enthusiasm from the market considering that they got the $20 Million financing closed.

Now to your questions, I have uploaded an image that I have just taken from the new updated Oracle Mining Investors Presentation. It clearly shows that they will need $100 Million to get it into production, it also shows the different equity and financing tranche’s they have secured, bringing the total available cash to $125 Million. I do not know where the short-term offering of 20 Million is coming from, based on my calculations it was $105 Million, if it is $125Million even better. In any case there is more than enough cash to get this mine into production.

http://i1281.photobucket.com/albums/a513/petergoldmann/OMN.jpg


The off-take agreement means that they will sell their copper at a fixed price in the future or for a limited period of time. This is good, since if there are major fluctuations in the resource market, they will be protected at a higher price. Investors like to invest into companies that have signed off take agreements at a decent price, since they know that the company is protected in dire global times. The company will receive 15 Million as a loan in return.

 

What do I think this stock could be worth in the future?

We need the feasibility study and the 43-101 to confirm that this mine is a cash cow pocketing $50 Million net per year for the next 30 years. Currently the institutional investors are holding back their investments because they have not seen the 43-101 and the feasibility study. Once these reports are out, I hope end of this month, latest beginning of December, we will be able to see a major change.


The stock price and the volume of this stock is a disgrace and don’t represent the actual value of this underdog mining company. This company simply grew to fast and did not focus at all on the market in terms of attracting shareholders and promoting the news reports. Now you have a company with $125MM secured in cash and financing, almost fully permitted and nobody knows this company. I guarantee you, when the 43-101 and feasibility study comes out 95% of all Canadian brokers will ask themselves why they never heard about this company before. This is a one of a kind opportunity for Oracle and the current shareholders to make some serious money.


The company has fallen way short on promoting the stock, as I said before, the management does not consist out of pumpers. Bad for us shareholders who are facing a 52-week low and no volume, with record breaking news releases. If they start a major stock promotion offensive with newly hired Investor Relations people, spend hardcore marketing dollars on investor promotion lists, expert coverage and promotion reports; this stock can easily reach 4-5 CAD, well before it even reaches production. The small and very unique dilution of only 49Million Oracle shares will allow this stock to hit these levels.  No problem.


Once the company hits production, I could not imagine at this point where the stock might go, potentially easy 7-8 CAD per share and guys we are not that far away from reaching production with this underdog.  Market cap should be around 300-350Million with no problem down the road.