RE: The Road AheadWilwal
Pretty much complete agreement.
Firstly kudos to management for forcing the issue and getting on with diamond drilling. Iam has shown that they are in fact not the chummy big brother that they wanted us to believe-they were prepared to RAB and RC drill until investors dropped off and they could pick up MXI cheap, IMHO. This program is a game changer.
As results come in the Proven number should march steadily northward. I predict that when that number passes, or even approaches, the 1.5 to 2mm ounce level we are gone. If Iam doesn't bite someone else will.
Which brings up another point. Any potential suitor will mark us down disproportionately if we lose even one point of this project, that is if we drop to less than a 50/50 partner. MXI needs to have a sizable warchest so that if Iam launches a large program, with a large cash call, we can participate and retain our interest-all of it. It bears repeating-there is a quantum differnce between 49% of a project and 50%!
I agree that we should brace for a large dilution-in less than ideal market conditions. Dilution now will pay big dividends later if the big guys try to force our hand.
As to price and timing I agree with you-the sooner it is the cheaper it will be. Unfortunately the slow irratic pace of this company has exhausted the patience of even their most ardent supporters. I believe it will be sooner and, unfortunately, cheaper.