RE:RE:GreedyI am a long term investor in mineral and petroleum exploration and production co. and fully understand the CRA rules for flow through financing. My point is exactly that. They did NOT need the money to fully fund the drilling program for this summer or this winter. I understand they must use the $12.5 million for exploration expenses, BUT, they already had the money which is what makes it potentially dilutive. Even if they increased the summer and winter drill program by $12.5 million they have enough funds. My point is that given the timing of the 43-101 and PEA, it is very unlikely that they will need the additional funds prior to my hoped for bidding war. Once the 43-101 is completed at the end of the year my expectation is the bidding will potentially begin. So therefore, they will be just starting their winter 2015 drill program (which is almost certainly fully funded as well, without the $12.5 mill).
Don't get me wrong. I am long FCU and am NOT selling. I have been in the stock for a long time, and have owned substantial positions in FIS and AMW. I have what is an uncomfortably large proportion of my portfolio in FCU and have not sold any, except to reinvest and arb perceived discrepancies during the DNN and AMW transactions.
I was also moderately happy with a little show of uranium on one of their other conductors, BUT quite honestly am deeply suspicious of the motivations for drilling only 330 m. from Fission 3.0's Clearwater property. Fission 3.0 doesn't have the deep pockets to afford the drill program and given the substantial financial interest of the intertwined management think that the value to FCU is not justified to move a drill 17 km to drill on the EDGE of the property which just "happens" to border Fission 3.0. It is expensive not only in terms of money to move, but in terms of time that could be spent drilling on the numerous other conductors much closer to the main ore body.
As a long term investor and former professional in the securities business I watch the behaviour of management closely and over the years have not been very happy with the way Dev and the FIS people treated shareholders. However, nothing beats a once in a lifetime ore body I'm holding my breath to see how quickly Dev issues more options. I fully was expecting to see a press release this morning. I discussed this scenario with one of my investing friends and the rather unusual trading pattern of FCU leading up to the financing. I expect that we won't see much of a break out until the options are issued.