I will probably regret this post but.. I should stay out of it but I can’t take this anymore, so many of the posts here make direct mentioned or implied that Osisko is waiting for their stock to go up and ours to go down to buy us out.. sorry to break the news to you, but you really don’t understand how capital markets work at all, or cost of capital for that matter.
Osisko has at least over $100M on their balance sheet that was raised at over $5.50 (I don’t see their stock getting up to that level in a short-medium term, plus if the market knew they are going to raise money and use for acquisitions, it would most likely immediately discount their stock price prior to it).
In much simpler words, BFD trading at $.12 or $.15 or $.20, doesn’t have the same impact (yes, of course it has an impact, however not even close or significant at all), of the impact of OSK going back to the market to raise funds for a buyout, they indicated they want us with the recent increase on their positions (and the non-brainer Lynx NE drillings results), any further significant accumulation will trigger a buyout, so this is imminent if you like it or not.
They are not going to buy back $40M-$50M of their own share either just to reduce dilution, they are on the business of expanding not shrinking, and if you ask me their last bought deal turns out to be quite successful in timing, so they will use that money on the smartest way possible (which includes increase their resources on an area they know a lot about it and are investing 90% of their money), and not take their chances of the market going south and suddenly we are more expensive for them and open the door for another group with cash in hand at the time to take a run at us, like it happen in so many other business.
Yes, they probably shutdown the valve and said no more spending on drillings in our side, yes, they didn’t help us with our drillings and watch us failed (when they know where everything is), and yes things have looked shady since our last bought deal.
But, we are going to be taken over my friends, it makes a lot of sense for them to apply that money sooner than later not only for the facts above but to maximize their logistics, mining/exploration plans, infrastructure, etc.
To have that done after mining starts or its planned will cost them a very good percent of our acquisition costs if not done concurrent with it.. so in any way you slice it it doesn't make sense for a smart group to delay it. They know what is there, they have had tremendous sucess on it, and they have bonuses rounds in some of the our other assets.
plus the whole market expects their new resources estimates to be quite a splash, so why not make it an even bigger one and not give us a free boost in our stock with it.