Monday, July 30, 2012

The Howard Group & Solid Resources On Temporary Hold


Solid Resources
TSXV - SRW
OTCQX - SLDRF
Shares Outstanding - 93.9 million
Fully Diluted - 129.7 million

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By mutual agreement HG and Solid have put our investor relations arrangement on hold until such time as corporate developments warrant a more aggressive stance.  

It’s no secret that a large part of the investment community and investing public have abandoned the junior resource sector in the face of global turbulence, uncertainty of long-term commodity price stability and a rush to fundamentally driven companies.  In short, we are largely in a world where the attitude is “risk-off”.

By extension, this has impacted stock prices and the ability of junior companies to raise capital and advance projects. To Solid’s credit, a few months ago it raised $1.1 million in a private placement.  

We do know that Solid is trying to forge ahead in tough conditions on its main project in Spain, being a tin – tantalum property. To its credit, over the past two years, SRW has produced “solid” drill results but it needs a bit more information to underpin an extended economic study. The prize would be to have an operational pilot plant in 2013 that could be project financed on the basis of the economics of its mineralization. Solid’s next step is additional drilling to underpin the study.

In the face of current conditions and a lack of news flow, we’re putting our formal relationship to the side, which hopefully will be a fairly short-term situation. All cycles come and go. 

This is the third venture over the past 12 years with which we’ve been engaged with SRW’s President & CEO, Greg Pendura. 

The Howard Group, members of HG and the associated Insight Limited Partnership II are shareholders.