GREY:XMTTF - Post by User
Comment by
juststocks500on Jul 09, 2014 1:37pm
149 Views
Post# 22729529
RE:RE:Financing
RE:RE:FinancingWell my bagholder's 2 cent worth opinion is
If I were a venture capital source of funds, which I'm not, and looking for the best play to fund, I would not further finance XME at this stage.
Because they have enough money to prove up the All channel target. So no need to further fund a potential miss which will put an end to the company as we know it. I don't believe in the meagre results of the Grasset properties. So they need to succeed here and now or it's game over.
That's why the spec game is basically over with no interest in this play whatsoever until the drill hits the ground. We may get another nickle or so once the drill starts but that's it.
If they hit, then SP prices go up. But ultimately, they'll need more money to complete a full drill program. And I'd be waiting; waiting to get proper terms and though slightly higher, with less risk. In other words, I would prefer less risk and pay higher than more risk with no fall back plan.
The only other way I see for this company to carry on after another miss will be a share restructure (even though they have less than 100M) and insider friends getting extremely cheap shares. Us retails will have been fleeced once again.
In order to get more money now, they'll need convincing data or visuals.
If we were back at a dime with strong interest right now, then it would be a different story. A leaking story of geologists unable to contain their excitement. Basically the reverse of last time.