Huge PPLike I said before this was a catch 22. The market is real ugly for juniors and it's a no win situation. I know everybody would like it to be @ 2 bucks.
Negatives
1. They are going to have to hit some major drill results to get this puppy above $1.25
2. Then to get it past 1.45 they need even better results. On the last PP we had Westwind clearing out the warrants. I’m not sure who will take care of them this time.
3. Big time share dilution.
Positives
1. Somebody has confidence in BTC with this kind of financing. It must be fully subscribed since they bumped it up from 10Mil to 15Mil. I know everybody hates the full warrants but they did pull in big coin and to get it, it takes some giving. Way better than the 60 cent stuff.
2. Mid Oct. is coming up and that is when the possible ABCP credit will either be a crisis or a small event. If it’s a crisis then it will be very difficult to raise money and the share price will probably get hammered.
3. There will be no more PP this year or probably next year but that is just a guess with all the cash they have. It seems strange to me to finance for so much money unless they plan on buying something and if they do then another PP might be required down the road.
4. Lots of cash so hopefully they drill a few properties at once.
5. Will flush out the short term players
So we have a 5-3 decision. Overall they will have lots of cash next month and the million dollar question is what are they going to do with it. I'll give them a B- grade and if they hit the mother load then I'll change it to a A++.
I figure it will take a few days to flush out the short term players. The finish today looked real ugly. Hopefully by this time next week we are back to $1.20 range but that just depends on how many short term players are bailing
For those people who paid over $1.25 for the shares and are holding tight, I sure hope the boys can find the goods by December and get the share price back up to $2 bucks. It's not looking good for the short term players. That's about all I can say about that.
Lets get those drills turning.
JMHO
MM