Eagle Hill Exploration Corporation V.EAG

Taken 6 weeks to raise $384k

[tomgranite]

https://web.tmxmoney.com/article.php?newsid=68249741&qm_symbol=EAG

Doesn't look like the market has much confidence in the management of EAG. I wonder how much of the $384k is actually new investors. There was some heavy selling when they announced the re-priced placement and I guess that some investors sold at 5c and then bought in to the PP in order to get the warrant at 8c.

Anyone care to guess how much drilling is required to get this project to a BFS.  The mind boggles as to how many shares there will be incirculation at that point, unless a roll back is done.

[MaxTMaxT]

Typical....everyone whining about management getting cheap shares and then hardly any participation in the part of the financing which is open to retail investors!...willing to bet that $384k was Cannacord involvement. ...could be a few more weeks before news on the last drilling program and an update on the next one! ...MaxT

[tomgranite]

Management haven't had cheap shares, they have had FREE options. Why do you think that retail investors have given this investment a wide bearth? There is a lack of trust and confidence in the board.  I hope you are wrong regarding the time frame for the overdue winter drill results and the start of the next drill program. Delays will sink investor's confidence even further.

[gold_Gold_GOLD]

Tom wrote -how much more drilling is needed to get to a BFS.   Mike Andrews thought they needed another 25,000 metres.  So am guessing another 2-2.5 mill is required  Wouldn't they start with a PEA first?  Prob go to Feas after that.  That is not cheap as well.    This story is starting to become a very sad one.  The only interest left is that Dundee is

[tomgranite]

Yes Gold, they will do a PEA first. The reason I mentioned a BFS is that if EAG decide to sell out to a major, they will get best VFM with a BFS (IMO). I don't know where Mike mentioned 25k metres to get to a BFS, but that sounds wayyyyyyy too low for me. They will use that much up just scoping the size of the project with scout drilling under the Red Dog. To get to BFS, everything they have

[gold_Gold_GOLD]

Sorry let me clarify.  he mentioned 25,000 metres is what he thought they needed to start putting economics behind the deposit.  he didn't say that's what they needed to get to a Feas study.  You are certainly correct - they need way more drilling before a full feas study is needed.  That number was mentioned at PDAC, not during the webcast but after. My guess is they

[MaxTMaxT]

Yep..so a $3.5 M financing will certainly cover 25,000m @ $115m drilling cost (which is what the winter drilling program averaged) just a matter of time and the drills will be turning.....whether or not the remainder of the PP is fully subcribed too ..but thats just my opinion ! cheers ...MaxT

[curt2go]

I agree. They got the majority of it. I would like to see the drill plan soon... 

[tomgranite]

People are missing the point that the PP at 5c was to raise cash for ''working capital'' and not necessarily drilling. SA put in $1mil via flow through raise in April which I am sure is ear-marked for drilling and they had about $1mil left over from the flow through raise done at Christmas last year. That probably gives them around $2mil for drilling, unless they dig in to the

[curt2go]

Working capital can mean anything. It's not just for regular overhead. They will have enough for a good drill program. Tty

[tomgranite]

From Southern Arc's30th May PR: Of the funds raised, $1 million was raised as "flow-through" dollars to be used for exploration at Windfall Lake. The remainder will be used for Eagle Hill's general working capital. That does not sound to me that it can ''mean anything''. It suggests to me that it will not be used for exploration (drilling) purposes. It would be

[curt2go]

Very sleuthy of you. I agree an update would shed a lot of light. I will try not to come to any conclusions until they spell them out for us. But that won't be until they close the financing. At that point they can then let us in on the pending drill results. They can't release them until the financing is closed...  We are on the same side. Tty

[tomgranite]

Just call me Sherlock. Here is some more investigative work: June 5 announce that $385k has been raised. May 9 they have raised $327k. So that means in the 4 weeks between the NRs they raised $58k. At that rate it will take around 3 months to fill the $787k remaining placement.. Will we really have to wait that long for the drill results to be released? Is there a stock exchange rule that you

[curt2go]

I do think its a rule. You can't release material information while doing a pp. tty

[tomgranite]

Ok thanks. Now this is where my suspicious mind goes in to overdrive. On 22nd April they cancelled the previous PP and started a new re-priced and increased one. My guess is that the results were available at that time. The drilling started in Feb, there were 3,200m of drilling (about a month's worth) so it would be finished in March. The core samples would have been sent to the lab in

[curt2go]

They only cancelled it to reprice it from how it looks. Someone on another site talked to IR and said they would ask for the results at that time. They don't even have them in their posesion as it sounds. That way no material leaks... I would really like to see the PP close... Does anyone know where those holes were to be drilled? 

[tomgranite]

I know they only cancelled it in order to re-price it. My point is that they could have cancelled the original PP, got the results from the lab, released them, then gone ahead with a new PP. The reason why they don't have the results in their possession is because they asked the labs to hold on to the results and not send the results to EAG. The winter was so cold that the lakes froze over

[curt2go]

It  might  have been looked negatively if they did it that way. Not sure... But having the results now would be nice... Was all the drilling fill in or any exploration? 

[tomgranite]

Dropping the price of a PP is negative anyway, why would releasing results before a PP be more negative? It was infill drilling on areas that are not accessible from dry land.

[curt2go]

I mean negative in the stock exchange sense. I just re read some of the nr's and found where they were drilling. But thanx for the info... 

[tomgranite]

Check out the Q&A section on the website, that is very useful too. There have been 2 webcasts that discussed the Windfall Lake project, one is March on the EAG site and the other is Nov. on the Southern arc site (might have gone by now).

[MaxTMaxT]

i doubt that Dundee will wait 3 more months for EAG to complete a PP..they will either go with the financing proceeds to date or kick in the remaining $787k to complete the PP....of course that will probably upset the SA guys on this forum because it would increase Dundee's percentage in the company.....but..hey ...Dundee has been in since day one and will see this through to production or a

[tomgranite]

Thanks for the clarification Gold. SRK recommended drilling only another 14,600m before doing an updated 43-101 and a PEA. Let's hope they hit something decent under Red Dog. They now have a better understanding of how the lenses have shifted under Red Dog.

[MaxTMaxT]

yakety yak..ok Tom ..perhaps i should have specified Dundee and SA (management IMO)getting shares at.05 with the .08 warrants...to finance the bulk of the PP @$2.5 M...i think you were the biggest complainer ! ...anyway retail investors have the chance to get the same deal on EAG which is in the Top 7% worldwide of undevoped High Grade gold mines ..at this stage I think that Management is wise

[Observer10]

6 weeks is alot. It shows that there isn't much interest or IR doesn't do a proper job to tell this story. As an exemple, Element financial issued over 1 billion in stocks, preferred and debenture and was sold out over 24 hrs. EAG stock is a tax haven. If you're a holder, you sell at a loss and can use this tax loss further against any gains. Then, if you buy into the tax shelter, you