RE:RE:More money coming in. Great stuff. In a couple of quick thoughts, exercising the warrants most likely resulted in quicker access to cash by the Company as opposed to lets say a more time consuming process of putting a private placement together. In conjunction with a private placement, the strike price on the warrants look to be in line with what would have been priced into any private placement. Here, it is my understading that most PP's are typically priced at a weighted 45 day average in the stock price then discounted for risk and or a kicker (incentive). Lastly, and as stipulated in the press releases, exercising the warrants are NOT subjected to a 4 month hold period like a private placement would have been.
IMO, this is very bullish. We have dilution to the public shares outstanding but NO dilution to full shares outstanding. If the drills hit gold, the shares generated by the warrants can be sold in the open market should a run in the stock price materialize. IMO, this can be construed as a short term negative because the potential of extra shares for sale might serve to dampen any run in the stock price but hey, these folks are entitled to some reward given that they have born the brunt (if not all) of the risks.
As for pending drills, I'm confident more gold will be had. The question is whether or not the grades will indicate something economic. In reading up on low-sulphidation epitermal type deposits, the feeder zones are highly prospective for eye popping grades. With two other properties with similar characteristics that are under explored, less than desirable grades would not be a big disappointment by me as I would not view that kinda outcome as a total bust. Maybe the grades are deeper down and maybe the other two properties hold promise. Per Westhaven, however, they have indicated a "significant discovery" at Shovelnose in each press release since the last drill and are investing their own money to drill again.
Think about that.
My take is that they are pounding their fists on the table and no one is listening.
GLTA