The SP is only being driven down as much as La Jolla is...

The SP is only being driven down as much as La Jolla is interested in taking a quick slim profit right now. In essence their willingness to sell so extremely low (0.3c/0.4c) is effectively not all that dissimilar to a share placement. Just put a buy in the queue at 0.4 or 0.3 and wait for La Jolla to drop it in.

Note that once the results and prospects of the venture are announced, no amount of La Jolla shares alone can keep the SP from going up. And once that starts happening, I doubt even La Jolla will have a lot of incentive to keep dumping down.

In my personal opinion, although not ideal, the structure of the deal is not too bad. TNR is not *required* to take the full note up. If at any point the SP and the venture starts looking so healthy that an alternate form of funding looks more advantageous then they are in no way tied to taking up the remainder with La Jolla. As much as we don't expect much loyalty from La Jolla, we have to keep in mind that the flipside of the deal is that TNR doesn't owe them any loyalty either down the track, and considering what we expect they will find in Madagascar that is a very strong element in favour of this deal.


And your caution sounds a bit hollow to me. *if* they don't find anything in Madagascar, then I don't think anyone here expects to get much back from their investments anyway. So far it looks unlikely that it will be a flop; it may prove not to have quite 12g/tonne of gold ore, but even a tenth of that is far from a flop. And honestly, I'd be surprised if all they end up finding is 1g/tonne in quantity.


If you don't feel confident in TNR's management or in the Madagascar venture, then nobody is forcing you to invest.

I have put a fair bit in based primarily on the following factors:
- Management is very pro-active... when results take a long time, they find ways to speed the process, ... when options don't make it over the line they don't delay the process, but they find a deal that will get them the needed finance so they can stick to their plan
- Management really believes in this project... see the previous point, but also management isn't making much other than through the shares and options they own... money where their mouth is
- Overall they do a good job at keeping the investors informed about what is going on. Calls to their office have by all accounts been promptly and frankly answered when made. When delays occur to previously announced deadlines they tend to announce an update so we're not left wondering.
- The initial results once fully processed were very promising, and are due to be re-confirmed any day now. Additionally, they are rapidly working towards an official evaluation of the size of the resource.

Granted, everything always takes longer than we'd all like, but this is not a stock that is going to slowly ramp SP. If the resource is confirmed to be as good as anticipated there'll only be a "before" and an "after" to the SP.


Still, everyone should do their own research and make their own informed decisions. I know what I'm doing with any further cash I manage to free up.