Issues 3 fold: No source + Chg in business model + ExpensiveI am posting because I want to protect new buyers whom might not be aware of all of the facts.
BRW business model has changed and it has made the risk - reward scenario very risky, given that it carries a market cap of $ 287 million (fully diluted shares) with no discovery.
Investors were sold on the idea that BRW was different, it was less risky because it had so many pegamatities (800) that it was like investing in 20 lithium companies. This diversification was to put large odds in the investors favor.
Unfortunately, this many pegmatities strategy has not yeilded the desired success and BRW has switched its business model to drill and concentrate on one core asset - Mirage. 90% of its funds are spent there, 10% elsewhere.
Despite impressive grab samples of 5% at Hearst (Ontario), the pegamatite did not yeild any significant lithium despite having used an XRF gun which was supposed to show that it had the right chemical information.
Investors were told that Saskatchewan was simply huge with large pegamatities and, Manitoba was added too. Prospecting showed that projects needed to be set aside as no meaningful lithium bearing pegamatities was found.
So West of Canada was put on hold in a matter of a few months.
We then drop down from 800 pegamatities to a possible 250 at James Bay.
James Bay, Anatacau West was supposed to be a property which Allchem missed and would bear lots of lithium. Drilling was done and lithium discovery is only 30 meters deep and scattered out. It would seem that no mine would be possible on this type of discovery, so it is a disappointment.
Plex was promised to be a biggie in James Bay, with drill cores in a core shack at Plex. A discovery was possible without drilling. It turned out that there was no lithium and back to square one.
Then we move to Antacau Main and only one pegamatite was found of interest, which would hardly justify any excitment or forward looking towards a mine.
Finally we get to Mirage, lots of glammor over 150 boulders with cyrstals but no source of these boulders was discovered. Pegamatities were found scattered over the land.
So it comes down to really one core asset Mirage, carrying market cap of $287 million and, no discovery to date.
The changing of business model going from many to one core asset has significantly increased the risk as an investment.
Also, I may be way off target as I am not looking at the map, perhaps the source of the boulders at Mirage come from PMET land.
New investors now have a little more information on BRW.
Good Luck to Everyone,