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Mega Precious Metals Inc MPRXF



GREY:MPRXF - Post by User

Comment by u2bobon Jun 23, 2014 2:26pm
198 Views
Post# 22686717

RE:Afternoon Folks, quick question (newbie?)

RE:Afternoon Folks, quick question (newbie?)Well at these prices they dont get any smaller...so if you do not like to dabble in small companies as you say !!! its best to stay away...  : )

On the other hand there could be the risk/reward side of investing ... 

The work on the gold side has already paid huge dividends, as the company has added 650,000 oz. gold to its resources via OCAP. And it has added those ounces for just $1 per oz.

“There’s been 30 years of gold exploration here and one year of tungsten exploration,” Kuntz says. “So you have to put it into perspective, but the first step was metallurgical testing [of the tungsten], and now we know that it is recoverable — the next step is to know how much we are going to be able to recover.”

While it’s too early to know how much tungsten will impact the project economics, the discovery has already played a part in Mega realizing some success on the financing side. Pacific Road Resources Funds, a private equity firm with a focus on the minerals sector, completed a significant financing deal with Mega late last year, with negotiations beginning after the tungsten was discovered. 

Pacific Road made an initial US$3-million investment in Mega, but this could rise to US$40 million and a 19.9% stake in Mega if Pacific Road exercises all of its options. If it does, the capital would be enough to take Monument Bay right through feasibility.

Good luck
Bob
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