RE:RE:RE:Fruit ..Tannin,
I just don't see a reasonable path to good production numbers (greater than 30,000 ounces/year) without occuring some large debt (from a MTO/BTR perspective) or massive dilution. Plus at a minimum if you do get the money it's still 12-16 months from just 30,000 ounce production. Gladiator as you say is a must but it's years out.
No I'm afraid with this latest news release and subsequent share price fall a buyout by Osisko is the only way to get some money to move things forward the way they need to be. In which case there are two sceneros. Osisko refirbished the mill and ships the high grade Windfall ore to Bachelor Lake until there mill is built. Then mothball the bachelor Lake mill and truck the Barry and Gladiator Ore to Windfall. Or Mothball the Bachelor Lake mill continue to prove up Barry and Gladiator. Build the WIndfall mill and truck Barry and Gladiator mill to the Windfall.
The problem for Bonterra shareholders who were hoping for that anyways is it will occur for a lot less then even the $1.60/share that was turned down. So Osisko gets this for basically nothing, the BTR shareholders get hosed big time, then each of you have a few extra shares of Osisko. Osisko shares currently sell for $3.75 canadian and lets say this sells for .20 cents/share. That comes to converting 18.75 shares of BTR for one share of Osisko. If you were to own 100,000 shares of BTR (from averaging down) that will get you 5300 shares of Osisko. Which means for every point gain in the share price it would have been $100K in the pocket but now it's $5300. This stock has to now rise 1300% just to get back to the BTR/MTO merger price of $3.60. Not my idea of a good investment.
The other issue is I'm not sure if any additional permitting is required to send Windfall ore to Bachelor Lake. If so then it's going to take some time to get that into place. I just don't know if the Bachelor Lake mill is worth the energy or cost. It's just not a good situation in anyway shape of form for Bonterra shareholders as I can see, other than a merger/share swap. Then it may take 10-15 years to recover all that has been lost.
Sorry, but that's as I see it. It's like what's the least worst option and none of them are good.