RE: News - More Money for DrillingHi, smilewithme,
I agree that this may be GSM's year. After last year's painful experience with VSA twice failing to raise funds they said they would, GSM appears ready to rock and roll.
As far as this latest financing goes, I again participated (I had for the late Summer/Fall private placement, as well.) It will take just the tiniest bit of good news and this stock will explode. Do you see on Yahoo the average number of GSM shares traded over the last three months? 46,000 shares. Puny! That's well less than $10,000 worth of GSM stock traded per day on average over that time. In fact, it's closer to $5,000 than $10,000.
Now, juxtapose that piddly amount with what International Bethlehem has agreed to fund in exploration monies over the next four years, in their letter of intent to garner 50% of the Monte Cristo property in a JV: $3,000,000. IMO, this is a company moving event. Even as recently as last May, I believe VSA said they'd raise around $2,000,000 for Monte Cristo alone, and weren't able to do it. Now, we have IBC saying they'll do $3,000,000. They can only be offering to invest that much in exploration for HALF of the value of Monte Cristo, because they are extremely excited.
Heck, they see what I see. There's gold in Monte Cristo--GSM already has from ~70,000 to ~100,000 ozs. of gold already discovered. Their current efforts will focus on the areas surrounding that find. I've been to the property. I've seen where the creosote plants are that GSM discussed at the end of 2007, when Ruth and Tony shared with me that the expert who analyzed the traces of gold in the plants had never seen higher readings on similar plants, anywhere! That location is right near the MacLean pit (where the current resource exists).
Now, GSM is cashing up and will drill like crazy in 2008. I believe they're working on other JV's, as well. That makes sense, too, as their additional Walker Lane and other properties are also terrific candidates for JVs.
To go back to what I said at the outset of this post--it won't take much and this stock blow up higher and faster than we can now fathom. After all, we're talking about fantastic properties that GSM was gathering back around 2000, when no one cared about gold. Now? Gold's in the $900s and Monte Cristo--which is similar in ground and structure to the famous Comstock lode--except that it's MUCH larger--will aggressively be drilled. All it'll take is one hit--just one--and we're off. The stock market notwithstanding, IBC thinks so much of MC's prospects that they're willing to invest $3,000,000 to get just half of it!
Investors were greatly disappointed by GSM's lack of activity in 2007 (again, mainly due to VSA's failings), and the stock still reflects that sentiment. Now, GSM active and will get MORE active. The company is rockin' and rolling' and the market doesn't know it, yet. But it will, my friend, it will.
GLTA!