Birch Hill Gold Corp. FNTRF

re financing

[Fusion1]

That is a good point of view bottom feeder,but sometimes it is easier to get a bigger investment than a smaller one.The institiutions who look at these opportunities,have costs and efforts that make a small P.P.  not be in the cards they have analysts and due diligence costs that make smallish half a million dollar p.p. "not worth it".

If you want that corporate backing including analyst coverage to all their brokers and clients you need institutional coverage,that is the way he hope to see it go.

[buylow4]

Following juniors for a while and looking at this particular scenario, I would expect the following:- PP in the area of 3-4 million- News to come any day now- Another drilling program to commence as quickly as June- Looking at recent trading, I would place the PP price between $.36 - $43BL4

[botfed]

A quick question: what would they do with 3-4 million right now? PPs aren't put together without a budget for the use of the funds. The budget FDN management had put together allocates about $500,000 for Sanders. In order to secure 3-4 million, management would have to put together a new budget; that means drawing up new drilling plans. I don't see why they'd authorize

[buylow4]

If you're a junior and at the stage that FDN is at.....you take the money when you can.You are correct though, there will be more than enough $$ left over after the summer drill program.......and regardless of the results, the company can continue to operate and not have to worry about going to market for funds again.....BL4

[botfed]

There's one thing that FDN can do to get the SP up: go for an NI 43-101 resource estimate for Coldstream. That strategy did wonders for Alexandria Minerals' (AZX) SP over the last year, although Alexandria management was smart enough to dribble out the good drill results once per month during drilling season. I don't know if FDN management would do that, but it worked for AZX

[buylow4]

They only way to get to a compliant NI-43-101 resource estimate is to continue with the infill drilling programs.There hasn't been enough drilling performed......that 's why it 's non-compliant.This will take money and time.With respect to PP's and dilution of companies.......that's the game in this biz.  If I'm going to be dishing millions to a junior explorer so

[botfed]

True enough, but a big PP could be positioned better. If a company has so little on the table, it keeps the PP sizes small so as to not dilute too much. If the stock goes and stays up because of good results from Sanders, then another PP can be conducted on more advantageous terms. I don't mind the incremental approach, which is fairly standard for exploration companies.