RE:RE:RE:RE:RE:RE:RE: 3-7 yrs before they own the production rights and landOnce they are over a certain threshold on reserves , and before expending all cash, they may decide to finalize on the mill purchase and go into production at the current capacity of 500 TPD. A production decision with a mill that is ready to go will automatically cause a re rating of the stock and a financing could be done at higher prices. There are also plenty of warrants owned by Sprott who understands the impact of a production decision and who could exercise even though the price may not be as " in the money " as most investors would want.
He knows the stock will run on a production decision.
Again Silvercrest is the perfect example, they are in the process of building a mill but haven't produced a single Oz. and yet they sit at $ 1,700,000,000 market cap.
Over 10 times our current market cap.
We have plenty of room to move higher and a future financing won't be dilutive.
Marcsr wrote:
Cressco,
You are correct, if the share price goes up substantially, that would potentially moderate the number of shares issued for the additional financing.
In that instance, my estimate of massive dillution may well not occur.
Thanks for your comments,
Marc