Metanor Resources

Metanor is a stock that takes very good care of its management. I owned this stock years ago and actually was able to get out with a small gain. Since then I have watched this company dilute itself into nothingness. I think it had about 60m shares when I learned my lesson.

I'm not saying it is a fraud. If you consider good mgmt to be an essential part of your stock selection process you pretty much have to write it off.  Look at it's history on Sedar and you would probably agree.

It does have good pr. Just don't expect it to live up to its promises anytime soon.

Sedar, (to the best of my understanding),  is a repository of all legal filings that a company must make in Canada.  Great place to see all the stock options a company rewards itself, follow dilutions, see all the details of a NI 43-101.  Press releases tell you what the company wants you to know and how they want you to  know it.  Sedar takes away the gloss.  In the case of Metanor you will see a history of dilutions and generous options awarded to the mgmt. Generally it's boring research. Sometimes it is quite entertaining.

EconomicFreeFall - was just perusing your site this morning - great work.  I came into the mining space at the same time for the same reasons, following roughly the same number of juniors and really looking for those transitioning into production.  I agree, even at higher prices, they are more compelling now than 2 years ago - I was in fact telling a friend exactly that earlier this morning when I ran into him at Starbucks and he was complaining about 1600 having no gold.  Looking forward to new ideas on your page, especially as I already really like your favorites. 

On Metanor I keep coming back to the SandStorm deal.  I've watched interviews with their CEO and he has impressed me, though I never bought their shares.  ShouldaWouldaCoulda.   They 'loaned' MTO 20 million for 20% of production LOM from Bachelor Lake, plus 500 oz.   That suggests to me they saw BL future production as compelling at a valuation of 100+mm, yet MTO trades now for 50 mm and you get Barry deposit for free.  Sprott is in there too, which is always a plus, but Sprott is huge and can take speculative bets on a micro cap like this.  Given past disappointments, the SS deal is far more reassuring in a world without guarantees.   While not a pure equity investment - it will behave more like a loan if MTO can't get into production - SS has a relatively tiny pool of capital to be tying up funds  without a high degree of confidence in success this time around, imho.  Am I trying to read tea leaves?  Probably, but at the right price, I have no problem with that, I'll coattail SandStorm for less than half the price any and everyday.

MNNRF is a warrant on MEAOF, I believe with a one dollar strike and a may 2012 expiration.

If so, curious as to your SH handle, if you'll share.  I don't know many of the usuals there, and I've been on SH for awhile now and always pay attention to handles of those who know their shit.  I've followed it for well over a year now, but have rarely posted - I post a lot on some I like, and post very little on others I like - not to keep the latter under wraps - but just because some boards engage my attention to participate and others don't.  The MTO board never seems to interest me much even though MTO is my favorite flea bitten dog right now, and I do love flea bitten dogs, especially when they get 'adopted' by the likes of Sandstorm and Sprott. 

But I will say in this case I'm holding over a million shares and wondering what I was thinking two weeks back when I didn't buy much more under a quarter. It probably is my favorite right now. If someone told me tomorrow I had to liquidate all but one, I'm pretty damn sure MTO is the one I'd keep. Yes, mgmt has royally screwed up countless times.....but on the flip side....companies with perfect mgmt never get truly and insanely mispriced. Before I got almost exclusively into Canadian resource companies 3 years ago I had spent the 7 before that exclusively following bankrupt stocks. Bankruptcy structurally is the most beautiful of all the markets. Hard to believe but true...if anyone is interested I'll post why. But I switched because Canadian resource companies with better potential started trading cheaper three years ago, and many still do. But if bankruptcy taught me one thing, it's that mgmt that has completely screwed the pooch in the past can sometimes, albeit rarely, redeem themselves. The second thing I learned was never take it for granted, always look only for corroborating evidence. In MTOs case, it's those insanely smart guys at SandStorm. They bet for big returns and they paid up at a steeper valuation than now, even with it up 40% in a week.