RE: Things seem hopeless.....- TZapper"Still $3,000,000 is really not much money and after ECD pays PLE back for out-of-pocket expenses PLUS other obligations....neither company will have much to carry-out a serious drill program."
T, I was thinking the same thing after seeing the revised IPO figures. I believe that ECD has to give PLE around 2.1 mil. after the IPO closes, which would only leave them with around half a mil. because the net proceeds from the IPO are slated at 2.6 mil. after Cannacords $400,000 commission.
But, here's my theory after thinking about it:
First, 2.1 mil. would be enough to carry out a small drilling program on Bolsa. PLE has had plenty of time to determine exactly where the hot drilling locations are.
Second, as for ECD, think what you may about Guy and PLE, but the ECD partner at Escondida is an experienced miner in Equador, and I don't think these guys are stupid. They have had plenty of time to do sampling and exploration at Escondida since we last heard any news last June.
So, here's how I see it: PLE gets the accord and drills Bolsa with excellent results that move the SP much higher. They can then do another PP to bring in a bunch more money to either continue drilling, or it doesn't even get to that and Barrick or someone buys them out.
I think that PLE/ECD have been sitting on all of the exploration results that have been accumulating during this long wait for the IPO completion. After ECD starts trading, they start releasing a bunch of stellar sampling results and the ECD SP goes substantially higher than the initial .40 IPO price. Then, they do another offering of say an additional 10 mil. shares for say 7.5 mil.
These are just my theories, but don't be surpised if PLE and ECD have this all planned out already and are simply waiting for the accord and ECD to start trading.
Cheers! zz