Well after all it might not be so bad…We are in the same situation as Komet Resources a junior gold mining company. Both FCU and KMT have great management, great resources and need more money for exploration to increase their value. With the agreement with Denison, now both share the same vision: “Discovering by Producing…”
Drilling is expensive, if we can produce and invest that money in exploration, there is no further dilution of the SP. We have a lot more drilling to do to get the full potential of FCU. Initially, I was not too happy with that agreement with DNN. Now I think it is a smart move. Of course it seems to dilute the SP (do not forget that we also get half of DNN) but the real dilution would have been through several rounds of financing to raise money for drilling. These days, financing is not an easy task and sometimes we have to give a lot more of the company. In addition, with DNN we get a team to proceed with production of FCU resources whenever a new mill is ready which could increase the value furthermore. We all know production is not Dev’s interest. Now we are in an ideal situation where we could make BIG money (instead of selling the cie for $5 or $10/ pound) we would be able to sell U3O8 for its real value. Meanwhile Dev will continue exploration till PLS looks as a swiss cheese!