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Canstar Resources Inc V.ROX

Alternate Symbol(s):  CSRNF

Canstar Resources Inc. is a Canada-based mineral exploration company. The Company is engaged in the acquisition, exploration and development of mineral properties located in Canada. The Company’s flagship exploration project is the Golden Baie project in south-central Newfoundland. The Golden Baie project is the Company’s flagship precious metals exploration asset. Its 100%-owned Golden Baie Project (548.75 square kilometers) hosts 93 kilometers (km) of a structure similar to Newfound Gold's QueenswayGold Project. Its Buchans-Mary March projects (65.75 square kilometers), which include a Glencore joint venture, are located within the past, producing VMS zinc-copper-silver rich Buchans Mining Camp and boast high-grade zinc and copper discoveries. The Buchans-Mary March Project is located in central Newfoundland, 20 km northeast of the same geological group that hosts the former producing Buchans Mine. Its wholly owned subsidiary is Altius Minerals Corporation.


TSXV:ROX - Post by User

Bullboard Posts
Comment by jensen383on Oct 10, 2009 2:12pm
265 Views
Post# 16379772

RE: prediction

RE: predictionI hope that you are right although I think that the short term predictions are too high. The current price already includes probably the assumption that the company has a 75% or more chance of winning. I think that the real time to buy more will be one to two weeks after the ruling. With the ruling the price will jump to $.35 (maybe a bit more) and fall back to $.20 to $.25 in the weeks following.

My reasoning is that there will have to be a dilution of the shares in order to raise funds for drilling and ongoing expenses. According to the latest financial statements the company six months ago only had $200,000 in cash which is most likely close to gone by now. In addition remember that the company only has an option to purchase 50% and the first right of refusal to purchase the remaining. This first right of refusal will be at approximately market value so it can not be considered in any valuation of the Canstar's interest in the property. I do not see Canstar purchasing the other 50%, rather probably it will be the opposite with Xtrata buying Canstar's interest early if good assays are received on the new drilling. Xtrata is not fighting this in court to receive anything less that the real value.

Still lots of money to be made. I will not be selling what I have upon the decision and will add more in the weeks after when the price settles down. At that time the risk of delays will be gone.

If my thinking is wrong, please feel free to post comments.



Bullboard Posts