When faced with a large amount of spin, I find it is useful to go look at the FACTS. Below, from the Company's July 31, 2012 end of Quarter filing - it is dated September 10, 2012.
Important corporate and technical issues facing the Company in the coming months include: the Company’s ability to secure adequate financing for exploration expenses including the planned Hog Ranch drill program, maintenance of the El Salvador and Nevada properties and general working capital purposes; the Company’s ability to secure financing for the continuation of PacRim’s Arbitration action; developments related to the Arbitration action; the execution and outcome of a Phase 1 drill program at the Hog Ranch property; developments related to the potential signing of a formal option agreement to acquire the Remance project and the subsequent undertaking of an exploration and drilling program at Remance if, as, and when it is formally acquired; and, the continued search for additional exploration project opportunities. The Company has been successful in raising funds through equity financing in the past but there can be no assurance that such financing will be available in the future, or if so, available under favourable terms, or that alternatively, financing through means other than the issuance of equity can be achieved.
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So the completion of financing does NOT appear to indicate any imminent resolution of the conflict with the GOES. Funds from the PP will be used for:
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- the Hog Ranch drill program,
- maintenance of the El Salvador and Nevada properties
- general working capital purposes;
- financing for the continuation of PacRim’s Arbitration action;
- developments related to the Arbitration action;
- Phase 1 drill program at the Hog Ranch property;
- potential signing of a formal option agreement to acquire the Remance project
- exploration and drilling program at Remance
- search for additional exploration project opportunities.
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The Press Release announcing the Quarterly results shows the following financial needs:
At July 31, 2012 the Company had current liabilities of $1.61 million,
The Company anticipates that the Hog Ranch drill program and associated exploration will cost approximately $1.5 million, with a further $1 million required in the event the Remance property is acquired.
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So let's see..... how about some simple math as fact over fiction....
$4,215,000 - proceeds from the recent PP with OceanaGold
(1,610,000) - Current Liabilities - bills due to vendors
(1,500,000) - Exploration at Hog Ranch - planned costs
(1,000,000) - Exploration at Remance - required if optioned
(1,000,000) - 2012 FY G& A Expense - amount spent
($895,000) - Amount "left over" - Oops! Potential "cash needs" exceeds amount raised!
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So with 1.5 Million for exploration at Hog Ranch, the Company has some decisions to make with the remaining $2.7 Million. Does it enter into the Option on Remance and spend the $1M? Does it pay the vendors the past due/owed $1.6 Million? Does its pay its annual operating expenses (G&A)? Which of these get short shrift?
Oh, but wait! What if there are additional expenses related to preparing the case for the Arbitration Tribunal? Where does that money come from?
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So you see - and examination of the FACTS makes it clear that one can't jump to any one conclusion from the news release on the raising of funds.
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But we should be able to tell if spin is more important than the facts. Those running P & D schemes, when faced with the facts will:
- Get all excited and make multiple posts
- Post periphery information associated with the facts in an effort to obfuscate
- Employ personal attacks against the poster who presented the facts
- the truth can not be allowed to stand out there on its own it has to be challenged.
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So there are the facts - let's see what transpires next.