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Franklin, TN 37069
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NMC, Inc.
Statement to Shareholders
September 22, 2009

NMC Inc. Shareholders:

Because I receive several calls and emails from our shareholders every day, I am painfully aware of the level of frustration due to our low PPS by way of the DTC’s Global Lock and the lack of available information . I am writing this letter to respond to recurring questions and to provide a brief update, although I cannot discuss on going negotiations.

 With respect to questions of fundamental value, we continue to seek opportunities to sell the assets of NMC or to enter into joint ventures with qualified parties in order to generate revenue.  This process has been hampered by the ongoing economic crisis and the inability of prospective buyers and/or joint venture partners to obtain financing. There are a limited number of potential purchasers or joint venture partners and the evaluation, due diligence and negotiations process is lengthy. We continue to be in discussion with numerous potential buyers and partners and remain cautiously optimistic that a revenue generating opportunity will happen; however, we are uncertain as to timing or the form it will take.  

In addition, our PPS is currently also hampered by regulatory factors, some of which are applicable to all “pink sheet” companies and some of which are unique to NMC. In the past year or so, the Financial Industry Regulatory Authority (FINRA, formerly known as NASD) has increased the requirements imposed on brokers that trade “pink sheet” stocks.  As a result, many brokerages have ceased, or limited, trading in pink sheet stocks altogether.  In addition, NMC was delisted as a reporting company in 2003, which creates legal obstacles for brokers desiring to trade in NMC stock. Finally, in the Spring of 2008, the NMC Directors expressed concern to our transfer agent, Integrity Stock Transfer, about “suspicious trading activity” and our transfer agent contacted the DTC.  In May 2008, the Depository Trust Corporation (the DTC) placed restrictions on transactions in NMC common stock due to concerns the DTC has about  the number of outstanding shares and the accuracy of NMC’s trading records under previous management and an in-house transfer agent. We have taken steps to correct those problems as much as practicable and have contacted the DTC on numerous occasions seeking specific information about their concerns and offering to address them in a number of ways. For reasons unknown to us, but likely the relative small size of NMC compared to the many issues faced by the DTC, they have not yet provided us specific information about its concerns, leaving NMC unable to resolve them.

In response to DTC’s “lock” and NMC’s status as a delisted reporting company, each broker dealer makes its own decision as to whether to trade NMC shares from a risk/reward perspective. One broker, for instance, decided to halt trading, then changed  it’s mind and allowed it’s clients to sell NMC common stock but not to buy because it began losing clients. Although some brokers are continuing to trade NMC, the harsh reality is that, absent a significant revenue event and/or change in regulatory posture, trading in NMCX common stock will continue to be limited for the foreseeable future. 

By way of update, in late August 2009, we received a certified letter from the U.S. Department of the Interior informing NMC that its mineral rights on the seven Matz mining claims in Nevada “were unavailable for mineral entry or location under the general mining laws at the time the claims were located and remain closed as of this date.” In other words, the mining claims filed by previous management were filed on land that had been closed to mining claims and are, as a result, not valid claims. NMC’s remaining 17 mining claims in California are not affected by this closure. Because NMC’s mining claims do not represent proven reserves, NMC has not carried any value for its mining claims on its balance sheet but continues to believe that it’s mining claims do have value.

We are pleased that commodity prices are up since January, 2009 which increases the “BEFORE EXTRACTION AND GROSS MARGIN” values of the mineral concentrates owned by NMC and are hopeful that prices will return to their March, 2008 levels.

I mentioned Rio Tinto in our last update because I had met with them thinking joint venture or acquisition was possible until it became clear that they were in financial straits themselves and could not  provide the financing. Because of their financial situation they decided to joint venture with the Chinese, who provided $19.4 billion. Rio Tinto tried to back out of the deal and the Chinese government has now “detained” four Rio Tinto’s executives. These sure are interesting times.

On 8-19-09, we met with the AZ. State Land Dept. and have been assured that our lease on the Skull Valley property will be renewed subject to the completion of certain things such as revising the Mining Operating Plan, which we are doing.

We have many possible scenarios in the works and have shut no doors except for trading platforms, as we have not yet found one with proven validity.  Our acting Project Manager, Pete Rushbrook, continues to provide security and  ore samples for several prospects who have demonstrated interest and signed NDAs. We have come very close on various transactions but we must finish the race to gain the prize.

Your continued patience and prayers are appreciated.
In Your Service,


Michael Sheppard, President
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