RE:RE:RE:RE:RE:RE:20 Years Ago Okay, 49er, welcome to the the SH OCO board. Sorry for jumping all over you. This board good tempered and informative with few exceptions,
If it's dilution that's your concern I have some thoughts on that.
First, investment in Santo increases OCO's ownership in the asset, from ~57% to 81% with an investment of CAD $30 million, an increase of ~42%. If all that $ is raised at an average of $0.60, that's 50 million shares, for dilution of about 24%. Such dilution therefore adds to each shares value simply as a result of the greater stake in the asset, +42% ownership vs just 24% dilution.
With every expenditure i expect the asset to get more valuable, and if the financings are done in stages they will be done at increasing share prices, limiting dilution.
And you're correct, there's enough ore and value that dilution need not be a concern. The RBC report - https://orocoresourcecorp.com/copper-market-research-2/ - details values that I think are perfectly reasonable to expect Santo Tomas to be measured by. I'd rather not attempt to predict the ultimate value in a take-out, but suffice it to say that under all expected scenarios the valuation is many, many times the current sp.
Yes, there are many variables in mining, metal prices, grade, tonnage, metallurgy, strip ratios, jurisdiction, infrastructure, etc., but ST comes out favourably in all categories. And with a relatively few similar projects left on the planet and I think there's a case to be made for prices paid to rise. I don't see deposits of this quality not achieving appropriate valuations as they get better defined and I don't see examples of such deposits not getting bought.
On balance, there is way more positive here than possibly negative (I've yet to see any negative worth noting, aside from the general state of the markets, but even that is an opportunity, they'll turn positive eventually and the wind will fill the sails).
https://orocoresourcecorp.com/copper-market-research-2/