What Now for OXwhereby Osisko Mining Corporation (TSX: OSK) will have a working right and an exclusive option to acquire up to a 60% undivided interest in Orex's Goldboro property and surrounding claims in Nova Scotia (collectively, the Property), by incurring exploration and development work expenditures and by making a private placement in the Company
Does the ``Goldboro property and surrounding claims`` include every shred of land OX owns in the area or just Goldboro and claims immediately surrounding it.
Scuderia430 mentioned OX having a fair sized property in the neighborhood of 270,000 hectares or 270 sqkm (I`ve never verified). The Goldboro project is described as a 6 sqkm patch of gold bearing land.
Between now and up to September 25, 2015 (the Option Period), Osisko will be the operator of the project.
Does this mean that the money OX is getting in the most recent PP will not need to be used for the drillingÉ If its not used for the drilling then what are the plans for the moneyÉ If there is land not included in this deal, does OX focus on exploring the rest of the land it owns. If all the land OX has is included in this deal where does OX go from hereÉ
Does OX just become a holding company for the next few years while OSK develops the propertyÉ If not a holding company what does OX do with the moneyÉ If they couldnt get things going in Goldboro on their own then why would any new property this management team acquires be any differentÉ
Lastly, just a comment on todays trading. I don`t know what I was hoping for but I`m ok with how things are going. This stock wasn`t going to hit my sell target all in one day so it doesn`t really matter where things end up today. In just about 2 years time 3.5 million bucks or more will have been spent on drilling Goldboro. That is another 35 million shares of dilution (if OX tried to raise the cash themselves) at an average of .10 that we don`t need to go through. Imagine what the resource estimate will be like as we approach that date 2 years from now. We know the gold is there. If you set your shares aside OSK will make them much more valuble then they are today and it won`t take that long. I suppose if we had hit .30 or .40 cents today I might have thought about playing around abit but short of that its not worth the trouble of guessing the dips and playing the trading game. In 3 months time as interest and name recognition continue to build in OX and this deal is better understood we will be a steady climber. Its not the way I would have done things but it is a very safe place to put your money for the next few years. A virtual lock for price appreciation.
Sorry about all the É`s its a french keyboard and I don`t know how to get the question marks to work right. ;)