RE:A strategic move no doubt, we could probably use an extra A recent example of this strategy was orchestrated by Richard Warke of Arizona Mining.
It was an exploration play but deep, not without it's idiosyncrasies, certainly not a laydown in many peoples eyes. Warke was hitting on the drilling side and he had made very good money on two prior deals so raising money wasn't the problem but credibility was, at least in my view, so He needed a Pro to add the missing piece of the puzzle.
So he hired James Gowans, ex of Inco, Placer and Barrick and who had built 7 mines and this was going to be # 8. They talked about this a lot !
And it worked, Arizona was bought for $ 2 Billion and Warke made $ 600 Million on the deal.
( went from .40 to $ 6.00 thank you very much )
Another interesting bit of trivia is that during this time Warke was also running another Junior called Castle Mountain Mining which was in the process of trying to expand a known resource and do you know who they hired as their structural geologist ???
Small World.
And then Warke did a deal and merged Castle Mountain with another Co. now called Equinox which is run by his good friend Ross Beaty.
And then our local boy made good, CT for short, also worked at building a mine for Imperial Metals in Nevada and that Co. has as it's major shareholder a guy named Murray Edwards so I'm thinking, where is all this cash coming from and could it be that CT has these guys in his rolodex ?
Naaaaaaa can't be.
Must be the Shmenges.
Tminus1 , cue the Shmenges please !
But my imagination runs wild occasionally so all of this is just fun speculation..or not . LOL !
Goaweigh wrote: $ 10 Mill which would mean that we wouldn't need to pressure the warrant holders to exercise once those funds were needed. Many of the warrant holders are either insiders or friends so obviously they don't want to exercise any sooner than absolutely necessary, like the expiry date for instance.
So that may justify $ 10 mill but the remaining $ 20 is really an insurance policy.
Firstly I expect all of this money was provided by a strategic investor or group, maybe the very same people who have been buying all the prior flow throughs. They are averaging up as the play is derisked and will work with Chris to ensure we get the best deal possible when the time comes.
Remember Peter Brown built Canaccord Genuity and I have no doubt his associates, other guys who have done very well in this space are participating in these financings.
Warke, Beaty, etc. etc. I would be more surprised if they weren't involved than if they were.
Secondly, the next shoe to drop will be the addition of a seasoned Mining Executive, an operations guy, a guy who has built mines. I've seen this movie before. Chris, just the other day and for the first time ever, implied he'd like to take this to production, build a mine.
The glove has been dropped !
And although we never will build a mine adding someone to the team who knows how creates great optics and adds significant leverage when it comes time to negotiate a deal.
There is nothing more aggravating to a major mining Co. than a junior who makes a massive discovery, can finance at will and then adds mine building expertice.
It's like enough already, we'll pay you whatever you want just stop building the Co. for God's sake.