GREY:PCCLF - Post by User
Comment by
moneymotivatoron May 25, 2009 7:25pm
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Post# 16014960
RE: RE: Buy back
RE: RE: Buy backYea I would have to agree with marymart's comment about diluting the companies business plan with any new business deals unless it wanted to re-position itself into a diversied minerials company. The only other fertilizers companies from which it couple possible take-over are V.UUU which holds potash deposit in africa and T.SVU which holds deposits in China which both would definitly the geo-political risk of the company. Yea maybe the idea of spending it on development of the project would be a good idea but in order to seal the deal the company still needs to raise 1 billion dollars making the 70 million in cash seem insignificant. Seeing as managment always reffers to their cash as uncommited I dont think they have any intention of developing the project seeing as it is uncommited. So the companies options look like to me to be:
-futher develop the project and hopfully find new discoveries which interests investors (only 35% has been drilled to date)
-use the funds to purchase another land deposit which would most likely have to be outside canada
-use the funds for a partnership with IAMGOLD for the exploration and production of niobium
-buy back shares for a cheap as possible to position itself for another finanicing which is nessasry.
-continue to hold cash to interest potential buyers of the company.
-hold cash until the cash the next five years seeing as the 2012 date has been deferred.
maybe managment will think up something else until then its a mystery lol. GLTA PEACE