RE: RE: RE: RE: PDAC / March Presentation Here's the facts: 1) Management at 0.80 thought the shares were cheap, and decided instead to consumate an expensive $5mil debt placement with Sprott. Management has proven that keeping the share count low is/was their primary executive goal. If it was cheap at 0.80, what is it now? The debt is super expensive even by junior standards. The $5m is due in 3 months, but they can extend for 6 months, again for another expensive fee.
2) In December, management filed a shelf offering because they have to get the window open to get ready for the debt coming due. This was probably planned at the time of Sprott deal, as management speculated the stock would be higher because the massive increase in measured and indicated resource. I personally don't see a straight dilutive equity offering at these levels, but obviously the market is smelling that. I see a convertible bond, maybe even with Sprott converting their short-term debt to the longer-term convertible bonds. I see the conversion price being north of current levels, speculating 0.35.
3) Kimber needs $100 mil to move to production, and honestly don't even see this up for consideration till they get past this short-term debt hump. But what can happen shorter term is a JV partner coming in, paying off Sprott note, and taking equity stake north of here, again I guess 0.35 fair mkt.
4) There are 1000's of meters of core drilling that has yet to come public. Any further increase in M and I resource, makes the story compelling, and more likely Kimber will have the ability to consumate decent financing. Their history of non-dilution tells me that financing at the 0.20 level will be avoided at all costs. With a $16 mil mkt cap, all it takes is a few million shares of buying at these levels, to get back to levels of 0.30-0.50 a share, where the financing fix will be put in place. GOOD LUCK ALL