RE: Re: Hmmm..........As of July 13, 2010, Copper Foxhas $3.3 million cash that will be principally used to fund completionof the feasibility study on the Schaft Creek project.
You assume what you call "multiple activities planned" are not a subset of the activities required to complete the feasibility study or those activities which are not associated with feasibility are not an order of magnitude smaller in cost, in which case the $3.3M is more than adequate. If the drilling is one such activity, let's quantify the cost. 2000 metres of diamond drilling will cost them $100-$160K if
drilling costs $50-$80 per metre.
Secondly, they still have a substantial number of unexpired warrants atother strikes which they can exercise to fund their operation.
Thirdly, barring another financial meltdown, I expect stock price will start to drift up as we get closer to release of feasibility. We already have a lower bound on the company value. The fact that Teck will fund further development means that once CUU crosses the finish line, it can rest for a while. If it needs to raise funds, it would make sense to delay any further financings to later in the year or after the feasibility report is released.
I would be surprised if they elect to dilute with the financing mechanisms you describe and at the price you picked out of your hat. Given you think financing will be done at a price near current means either you think they need the money in the near future or the stock price will persist at the current level for quite a while. I disagree with this viewpoint, but time will determine who is correct...
IMO