Camrova Resources Inc V.CAV.H

RE: Financing Risk

[junior_miner]

Kazfan, I completely share the financing worries with you. Issuing bond would be the most lucrative option, I wouldn't mind if you contacted the company with your message. Ever since I have been trading in TSX-V, I thought what the heck is wrong with this market. Banks should be pouring money to these great projects and compete with each other. But no, the terms are stunningly bad for all juniors with few exceptions. I still kind of pissed of for Blue Note (BN), it was by far the best play in the market until they financed. Share count up like 500% (can't remember exactly) with very undervalued SP and there goes your upside down to the drain. I'm holding BAJ for number of reasons: - NPV does not show the true value. Adding manganese and doubling the production when having cash flows almost triples the NPV. I don't see any big obstacles to achieve those. Large enough portion of inferred resources should be mineable (already 80-100 year mine life estimated). And they are already negotiating manganese deal. - Financing is not completely about capex and IRR. As you said, management's resourcefulness, will to protect the shareholder value, and timing are important too. - Greenslade has constantly given the message that they will go for debt financing (with subordinate dept) to minimize, even eliminate dilution. - In PEA the capex went up much more than at least I expected, and this goal seems very hard to achieve. However, Management must have known the capex while giving these announcements. - So. I'm waiting for news that should be out in few weeks. If there's too much dilution to kill the upside, I'll be moving on, But I don't see much downside either.