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Southern Arc Minerals

DISCUSSION STARTED BY: mufflerr - January 19th, 2009 - 11:13 AM

+93-13

Message Board discussion related to Southern Arc Minerals.

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3 points

BY: marty47 - January 26th, 2009 - 9:24 PM

+221-27

Re: Ken Gerbino:

That is a ridiculous spread Muff -

SA is as much as people or somebody is willing to pay..

I hope a deal is in the works.

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1 point

BY: mufflerr - January 25th, 2009 - 12:23 PM

+93-13

Ken Gerbino:

"When gold takes off it will go higher than anyone is predicting. It will probably go up so much in one day that it will shock even me".

http://www.321gold.com/editorials/gerbino/gerbino012609.html

SA at and equivalent $15 - $175 per share before this bull market in gold is over?

Muff

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1 point

BY: marty47 - January 24th, 2009 - 3:21 PM

+221-27

Re: Southern Arc Minerals

I wonder if Mr. Proust will re-buy the shares at market or if it was a gift.... if he truly believes the stock is worth more than a dollar is a strong market or with a defined resource.

It is just a matter of raising cash..

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0 points

BY: mufflerr - January 23rd, 2009 - 7:36 AM

+93-13

Re: Southern Arc Minerals

Hi Joe,

Nice to hear from you.

It will be interesting to see what John does.

I'm scraching my bumpy head (from the misses rolling pin of course) wondering if John is going to go through all that trouble, like Kevin suggests.

Could very well be.

Should it occur, I would feel a bit sorry for investors with stops loss orders active between $0.10 and $0.07.

Too bad we didn't have stop loss orders in at say $2.30 when the stock hit $2.48 in June of 2007.

Some of us would be close to being insiders now.

Good things may be happening with Canada Nickel I suspect.

Take Care,

Muff

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1 point

BY: kevin23 - January 22nd, 2009 - 6:14 PM

+399-89

Having just traversed the continent on three flights today (having done the same in the other direction just 48 hours ago - ouch!), I'm grateful to you for stepping up to the plate. My calculator thanks you. Your answer matches my thinking precisely. I would take it one step further, though, just for clarity on one potential course of events.

Assumption: Mr. Proust has sold the shares to friendly hands, from whom he can repurchase the same shares at market.

Based on what I saw today on Level II, he needs only sell another 201,000 shares on the open market (in a matter of moments with one instruction), at a total value of $16,280. This includes 102,000 shares bid at .08. With this cleaned out, the inside bid would be .065. The next nanosecond would see him bid the 4.6 million shares at .07, and the friendly hands to offer the same in return.

Mission accomplished.

With such light weight on the bid, why would he place his bid at the current market? Why do you think that large number of shares sits bid at .08?

Where this gets tricky is if I place a bid for 500,000 shares at .07. For Mr. Proust to get his shares back at .07, he has to first sell to me. Not quite as attractive. Then you, Joe, make a buck harnessing that Winter Prairie wind and place your bid for 500,000 shares at .07, and then Muff steals and sells his wife's rolling pin collection and follows suit. Pretty quickly, Mr. Proust's point of indifference is no longer .07, but maybe .075... or .08... or .085... and the beat goes on. Don't worry on his behalf. He has a dedicated monitor in his office with a full picture of the market depth. He'll pick his moment very carefully... and in a flash, it will be done.

Cheers,

Kevin

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2 points

BY: joes2cents - January 22nd, 2009 - 2:47 PM

+123-6

Re: Southern Arc Minerals

Hi Muff,

I know you directed your question to Kevin, but if I may, I would suggest that JP sees a big difference between $.07 and $.11. That is a 64% premium on his sale. In other words (ignoring any commissions) selling 4,665,634 shares at $.07 gave him proceeds of $326,594.38. Buying the exact same amount back at $.11 would cost him $513,219.74, making the trade a net loss of $186,625.36. I believe (my opinion only) that JP could absorb that cost if he didn’t have a choice, but also believe that it would defeat the purpose of selling for tax losses. Just my thoughts of course…

GLTA

joe

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3 points

BY: mufflerr - January 22nd, 2009 - 12:00 PM

+93-13

Re: Southern Arc Minerals

Kevin,

When the stock recovers back to new highs someday, will it really matter that much if John purchases the shares back at $0.07 or $0.11?

Certainly he would want to purchase the shares back before any significant developments occur, don't you think?

How much time does he really have?

Muff

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0 points

BY: mufflerr - January 22nd, 2009 - 11:45 AM

+93-13

Re: Southern Arc Minerals

Snowbird,

I had the chance to speak with John Proust on January 5th.

The 4.6M shares that John sold was a tax loss trade only. John fully anticipates on re-acquiring those shares sometime after the 31-day transition period.

I mentioned to John that there seemed to be some anxiety on the board, due to his stock sale, and he reiterated that the sale was a tax loss trade only.

The Company's top priority now is obtaining the Mining Permits for Selodong and Taliwang. Selodong is their highest priority, for very good reason.

Regards,

Muff