Goal - Next 18 Mths Vs Cash SituationAs a side note, I would prefer that Kootenay hold off on any acquisitions until its share price is substantially higher. Using its current share price ($.48) at this time would be heavily dilutive to existing shareholders. All target (for acquisition) juniors in the space have gone up considerably in price over the past 9 months (since Kootenay published its consolidation strategy). I would prefer that Kootenay`s management wait (to execute acquisitions) until Kootenay`s share price has been driven to a more reasonable range, through successful drilling.
Northair`s management made the mistake of holding off on drilling (at least meaningfully) at La Cigarra for years, even when they had the cash to drill. They wanted to perform further studies and gather additional drill permits (for the newer targets), before moving back to the driling stage. A tiny exploration company needs to drill to show that it not only has the goods but that the assets are constantly enlarging (and advancing). Otherwise the market loses interest real fast. It didn`t help that the silver price had been hammered down also. The end result was Northair`s shareholders being tossed into the garbage disposal, even with a great asset.
I would like to see Kootenay`s management deliver on both fronts this time - exploration/geology and good (smart) business decisions, and also good/consistent communication with the market (as the junior mineral exploration space, by nature, is already a very skepitcal area). Minimizing shareholder dilution for existing shareholders needs to be one of the very top priorities for management.
Pg 3 Corp Pres.: ``$8M cash to execute business plan over next 12 to 18 months``
Pg 5 Corp Pres. (Goal - Next 18 Months): ``Drilling scheduled to test 12 targets at La Cigarra and La Negra``
A lot of targets to be drilled over the next 18 mths. Most will be drilled at La Cigarra - let`s guess and say 8 targets La Cigarra and 4 targets La Negra.
The $8 million current cash should last for a while. However, Kootenay needs to get the share price back up to $.55 - $.60 to cash in all these warrants over the next 12 months ($.71 by 12 mths from now, for the Sept`17 warrants).
We can probably get an additional $20 million in cash (mainly from the warrants) at various points over the next 12 months, starting in just 3 months from now.
Breakdown:
$8.0M - Kootenay`s cash position at Sept`16
$1.3M - 2,120,000 warrants likely to be exercised Dec 23/16 ($.60 strike price), 3 mths fr now
$1.4M - 2,388,214 warrants likely to be exercised Feb 2/17 ($.60 strike price), 4 mths fr now
$4.0M - 7,246,833 warrants likely to be exercised Jan/Feb 2017 ($.55 strike price), 4 mths fr now
$0.2M - US$150K (CAN $200K) cash from Pan American in March 2017 (1st anniversary)
$2.5M - 4,4825,000 warrants likely to be exercised August 2017 ($.55 strike price), 10 mths fr now
$10.0M - 14M warrants likely to be exercised Sept 2017 ($.715 strike price), 12 mths fr now
Total = $27,400,000 Potential Cash Next 12 Months