Claude Res Inc CLGRF

Grizzly

[oddykog]

You were right in saying 2 months ago that the thinking at the company had changed and they were not going to keep diluting.  First they completed a good chunk of borrowing with the loan.  Though it is at 12% it is nontheless not more shares being sold.  Then they have now taken the important steps of announcing the sale of the O&G interests.  I think it is all good.  Though high energy costs are tough for all the juniors the market was not recognizing that they were effectively hedged and the cash for the sale is likely to keep the exploration play on Madsen going for all of 2009 without dilution other than a little flow through action towards the end of 2008. 

I would expect that by the end of 2009 we will be seeing a really substantial list of drilling results from Madsen that will allow them to partner with a major at pretty favorable terms.

All in all good news.  Now if they could only get Seabee producing 70 000 ounces or more each year!