RE:RE:RE:RE:More diutionLucento is right. Trevali has fixed debt payments to Glencore which hits at their margins. Also, Mark Cruise is smart in that he doesn't want to stop anything right now and wait for profits to come from Caribou. They have three essential costs: running Santandar, the Caribou startup, and a large drill program/resource estimate update/PEA (future) at Stratmat. These are all costly at the moment, especially the last two, and especially when you only have one small mine running.
Cruise is just making sure enough cash is on hand so he can continue to develop the economics of their land and ultimately the growth of the company. If he stopped the exploration at Stratmat (instead of financing $5 million), that would push out the economic development of that site. It sounds to me like the development of the site will be in the works once Caribou is up and running. I would rather they continue to push resource studies there for development, than delay them, wait for caribou profits, and slow down their organic growth.