I am planning on buying more shares if ORM dips back to its previous low again. The price is rediculously cheap.

http://www.oremex.com/news/2007/news_2007-10-29.html

VANCOUVER, B.C. (October 29, 2007) – Oremex Resources Inc. (TSX-V: ORM) (the “Company”) announced that it intends to extend for a period of three months the exercise period of 4,666,667 outstanding share purchase warrants, which are due to expire on November 18, 2007. The affected warrants were issued pursuant to a private placement completed on May 18 2006. The $0.95 exercise price of the warrants will remain unchanged. The warrant extension is subject to the acceptance of the TSX Venture Exchange.
For more information, please contact:
Linda Thorstad, M.Sc., P.Geo.
Chief Executive Officer
T: (604) 683-5651
E: linda.thorstad@oremex.com


My take on this.

I think this is very bullish and here is why. Extending warrants is common, it is also potentially dillutive. Most warrant extentions I can recall are for 6 months to 1 year. Oremex only extends for 3 months...Very interesting! Why only three months? Well...I believe they are very close to resolving surface rights, but you already know that if you were a subscriber.

It sure will be interesting to see how the market reacts.

regardless... unless you are a warrant holder (i am not), you should not be happy about this news (im not!)

theyre so far out of the water that i feel a little better

The warrant extension means two things to me. First, the company was not able to make the expected share price of $0.95 within the period of time they had set for the warrants. This is not bullish for me. I don't have any warrants and I don't care if they expire out of the money. They are trying to keep those with warrants from selling into the market and keep them hanging on for a while longer. Second, they still need the money to avoid further financing! They are not trying to reward the warrant holders, they could do that by building the share price to over $0.95.

I hope I don't rain on anyone's parade here. I also still have some shares of Oremex and will keep them for now. If the surface rights aren't resolved soon, I will sell. The warrant agreement is not only an agreement with those that bought them but it is an agreement with those that don't have warrants that the deal has a time limit. This deal has been reneged on now. Sorry to see that happen. This clouds the water for me.

As you said, to reward the warrant holders, the share price must rise above $0.95. So, does this not make one think that they expect that the price may rise, maybe not exceed, but come close to this target price of $0.95 within the next 3 months - which is not that long?

I have the patience to wait and have no hesitation to buy more shares at what I think is a bargain price. And hey, if the price goes up above $0.95, I will be a happy puppy - doubled my money!!

Cheers...............

Very good points Dan and mshen!

Sure appreciate your points-of-view.

I agree the extension is not desirable or fair treatment of existing shareholders and IS a breach of trust.

I also expect most companies would do this given ORM's circumstances. That is not to say I am in agreement with it though.

And Bull, will you still send us a trade alert or let us know your trade activities when ORM reaches your target price?

Yes, I will continue to discuss ORM. I believe strongly in the future of this company. I will likely take some profit when the announcement is made, or trade it a little, but I am planning to stay with ORM until production starts at the Tejamen.

Great!! I am planning to keep most of my cheap shares until ORM starts to produce positive cash flow.

Is it possible for ORM to extend the period again, after february 18, 2008?