RE:RE:Capital cost?BenElderly88888 wrote: they have nearly $8 million or more in hand and can get more!
Ben,
According their latest Corp Presentation (slide 13), they have only $3M (not $8M) in cash plus current asset (market table secuirty, like PRB shares from their JV with PRB?). There are two conventiol options to raise additional funds for AZX.
- Option 1: Get a JV partner(s) and convince them to carry out the exploration work (e.g. drilling, get the 101 tech report done and perhaps a PEA in exchange for a slice of the company. As an example, they could offer AEM an additional 30% stake for say $10M. But, the larger company does not want to overpay, so it would depend on the good negotiating skills of Owens.
- Option 2: Arrange for a sizable PP to get the same amount of cash so that AZX would carry out the exploration itself (with the consent/support from current major shareholders). The price would have to be attractive enough (and below the current share price), plus some incentive such as wts/opts with "attractive enough" exercise price (dilution big time if they attached 1 full wt to the unit).
Regardless of which option Owens want to take, there will be dilution (no escape, since you want the money you would have to "suffer", just fact of life).
Another possibility is that, if Owens does not "deliver" soon (usuall, people would expect better progress than this...recall that the last 101 technical report for Orenada was done in 2009, and that was 8 years ago), he might be replaced by someone else who can do a better job.
There are a few key players at the BoD who could pull some strings (Gundy, Sprott,...).
GH