@hemi. my runthrough of the cash situationJust went through all the latest fillings and I will just put some stuff out there for you to comment on.
Starting with the cash assesment (everything is done in CAD). As of the begining of this year 1.3 million in cash on hand and 300 000 in liabilities, so really they had1 000 000 because Pure has said they wont take on debt this early on. This means today they probably have anywhere between 650 000 and 850 000 (iv already subtracted liablities). This doesnt leave them with much cash to drill anymore holes before PEA, my guess is they will drill 2-3 more. ALSO a cash payment of 285 000 is due to GeoXplor is due in mid May. So really they only have 350 000-550 000 to work with from now untill May. Im not a drilling expert but that is why I said I think they can only do up to 3 (maybe 4?) more holes with the cash they have (comment if you know more please). This leads me to believe new financing will either take place late May or sometime in June/July. Whether financing takes place in May or the early summer will depend on whether they can meet that Geo explore cash payment and finish the PEA. Ideally we want Pure to be able to make that cash payment and PEA as financing will be easier if the stock is not bouncing around. The scenerio we would like to see is commencment of the next 2,3, or 4 holes they do then a PEA by May or June, and then a 1-2 month period for the stock to settle down from all the announcements and pumping for financing. Most likey we will see a similar pattern with what the stock has done in the last 8 months condenced into 4-6 months. Pure will move from our .50-.70 range right now and somewhere between late April and late May will surge to anywhere between 2.00-1.30. Pure will then move down and settle anywhere between 1.50-1.10 over a month or two.
Financing. If and when new warrants are issued they will hopefully be in that 1.50-1.10 range supported by the end of the drilling campaign and the PEA (I hope to God they do the PEA before financing), I am fairly confindent they will though. Its anybody's guess what road they plan to take after the PEA and how much money in financing they hope to raise (comment please if you have reliable information). We can be certain however dillution IS COMING. It has to come, pure is at the 10% limit for prefered shares. The only way dilution would not occur is if they took on some debt but with only 4 000 000 in assets and no cash flow I don't see them doing this. If more prefered shares are issued dilution has to occur. How much dilution will occur will depend on much money they plan to raise obviously and the amount of prefered shares issued. Most likely this will be a big financing round as Pure will be out of cash by summer. Anywhere from 5 million and up is my best guess but I really have no idea. At the very least they will raise enough to keep operations going as usual for the rest of 2016. If they do that then 2017 would have to be the year for final financing for a processing plant and commercial production in late 2018.
This is just a mix of numbers from the latest fillings and my opinion guys. Comment if you have usefull feedback. I most likely will add to my position by a few thousand shares over the next month or two but that is it as I am not a large shareholder and I dont have that kind of money. gl