Yale - could you pleaseYale - could you please elaborate on the purpose for which the new funds shall be used. The short prospectus re the capital increase is providing a fairly broad explanation for the use of proceeds.
Your explanation is very much appreciated since you are still stating on XRC homepage that you actually do not need additional money until September 2010. This considering is made on the gounds that you also state on that same homepage that "
as of November 9,2009 the company had $29 million a cash reserve considered sufficient to fund expenditure over at least the next year at current levels of activity, including drilling on the Company’s Caspiche and Cerro Moro projects."
Re Caspiche it is stated (highlighted by me):
Drilling re-commenced at Caspiche in October with a programme that will build to a total of four drill rigs and will continue through to May 2010. The drilling program has been designed to expand the resource, to in-fill the highest grade area to improve the status to “indicated resource”, and for infrastructure, metallurgical, engineering and environmental studies. The Company has budgeted C$13 million to conduct this program from September 2009 through to September 2010.
Re Cerro Moro it is stated (highlighted by me):
Drilling has also commenced to test for possible high grade extensions of the Escondida zone onto the adjacent Fomicruz joint venture lands where the Company may earn an 80% interest by incurring certain exploration expenditures. This zone will be tested over a strike length of two kilometres (1.25 miles), a similar distance to that tested to date on Escondida. The Company has budgeted C$8 million from September 2009 through September 2010 for the drilling focused Cerro Moro program.
Many investors in XRC are currently disappointed in the recent development in the share price especially considering the surge in gold and copper prices. From my perspective this is mainly related to the capital increase and the non-communication of how you will use the roughly 50m C$ proceeds.
Are there any new findings of analyst based on your site visit to Cerro Moro and Caspiche from 10 to 16 Nov. with analysts (investors)?