GREY:CTMIF - Post by User
Comment by
ja_prufrockon Sep 10, 2012 2:43pm
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Post# 20343419
RE: RE: The Program
RE: RE: The Program N77,
Thanks for your input. Pirqirtas is definitely their flagship project. The thing that worries me as much or more than dilution, is that they may give away a substantial (i.e., >%75) interest in a JV in an attempt to use other peoples money. They appeared to hint that was the way they prefer to go at Cachi in the 7/25/12 Minesite article:
"While the main focus for Artha is most definitely not on Cachi, Todd believes that a little work here could draw in a good partner: “We figure if we spend around US$100,000 we can package it up for a national company to explore”, he says.
If they don't/can't sell it outright, I would prefer they raise sufficient money do enough drilling to roughly outline a resource and then follow the Altius founding equity stake model where they would bundle Pirquitas and some (~$1MM) seed capital into a new company in return for a substantial ownership (shares), representation on the Newco board, and a royalty interest (contingent on a successful Newco IPO). This would give them access to ffunding (via the shares) and freedom to develop other projects without losing the value in Pirquitas. It will be interesting to see how this management challenge unfolds.
Regards,
JA