With some of the most promising gold producing veins in California and North America, a reliable source of quarterly income, money in the bank and a plan for spending it, our Company is well positioned to participate in today's gold mining industry. This year's nominees for director provide the Company experience and diversification rarely found in a Company our size. I heartily encourage your unanimous support for this slate to carry on its duties.
Significant events during 1987 were:
1. Successful completion of Private Placement financing. September 1987.
2. Acquisition of lease of Osceola Mine. July 1987.
3. Royal Gold, Inc. replaces Transwestern Mining as operator of Kanaka Creek Joint Venture (company lessee). June 1987.
Rehabilitation of the tunnel to the Red Star Mine continues to advance. With less than 200 feet remaining to the cross cut tunnel leading to the Red Star Winze, we are optimistic about reaching the Winze in May.
The body of this report contains our fourth consecutive audited financial statement. I urge you to read the statements carefully. Great care was taken to provide in depth notes to explain the numerous transactions that occurred during the year. Interestingly, Note 2 belies the fair market value of our holdings. The casual reader may underestimate the Company's net worth and therefore the value of his own shares.
I am often asked what is the stock worth. I really do not know. The value needs to be determined in the marketplace where the motivation of buyers and sellers are measured. Recently our shares have been qualified and are eligible for trading in California (only). The authority for this is section 25131 of the Corporate Securities Law of 1968. This qualification does not apply to sales in other states and to shares which are otherwise deemed "restricted stock". Both state and federal securities laws apply to all transactions and shareholders are advised to seek legal opinion as to their individual circumstances. Please note section 25300 which deals with advertising.
Currently there is no public listing or market makers for the stock and no public ally available information on the company. Consequently the disclosure obligation will have to be assumed by the seller. The availability of such a market place has benefits to the Company and its shareholders and is a current goal of management.
Thank you for your interest and support.
Michael M. Miller