RE: RE: RE: RE: RE: Cash Position and Monthly Burn Pioneer,
You are pretty bang on in your assessment, however two points.
1. The spin out event has already occurred. Shareholders from roughly 2 years ago received a warrant for the newco for when they achieve certain events. Last month they released an extension as the warrants were set to expire in Jan 2013. The spin out will not be all the shares as DM will continue to hold 50.1% of the float themselves.
2. The cash burn is higher now than it will be in the future as DM is fully funding the exploration. Once that is complete, DMs proportion will decrease by 50% as I assume they will continue to participate in all future share financings.
Oh and while I will not turn down the free publicity and good comments made by Brent Cook, he seems to be a strictly exploration assesser and therefore his calculations on the value of the present asset (maturi) was not the best IMO. He extrapolated the valuation based on the deal set with Anto 3 years ago, since then the deposit has grown substantially and they took over the neighboring company that really increased the resource. His analysis was similar to saying well Facebook was invested in at 10 cents therefore that will be the going rate for Facebook 3 years later, when in fact the company has improved tremendously.