RE:RE:RE:Today's Announcementdjstone56,
From my understanding, the plan is to eventually spin off the Ruby Creek moly deposit, and hopefully bring in a strategic partner to further develop the asset.
I completely agree with you .... unlike many of the junior exploration companies out there, this is not a life style maintenance program for the top executive, as Dave O'Brien is only getting paid $2000 per month as CEO. Putting the funds raised from each small financing into the ground instead of the execs' pockets ..... and keeping dilution to a minimum. We'll be looking at only 35.2 million shares oustanding after the current financing closes ( approx. 2.8 million shares) and the 2022 option payment ($300,000 cash and 1.750,000 shares) for Ruby Creek is made. A very low float considering the known moly resource, and the exploration asset base of the company.
Actually, I misread the SEDI filings ..... CEO Dave O'Brien purchased the 46,000 shares on the open market at $0.23 on Dec 6..... The SEDI filings were not for the private placement. That being said, he has participated in every financing that Stuhini has had, so let's wait and see if and how much he invests in the company this time. It's good to see him supporting the share price with open market purchases.
As for a possible spin off ... it makes sense to have the moly deposit split off from the rest of the company. Bring in a strategic partner, say for an initial 20%, who will bring in more money to expand the current pit constrained 478 million pound moly resource. Some of the best holes drilled by the former operator, Adanac Moly Corp, are not included in the current Mineral Resource Estimate completed earlier in 2022 by Mine Development Associates. So, the moly deposit has good potential for an even greater sized resource. It might be easier if the company had the final option payment, due in Dec 2023, piad off before a spin off of the moly deposit was done.
A spin-off company would still hold the rest of of the Ruby Creek property, which is quite large and has many highly prospective silver and gold targets. Also. other than the known molybdenum deposit, there is quite a significant showing of tungsten as well.
The Que project in the Yukon is another gold prospect. From the sounds of it, the more recently acquired Arizona assets have some gold and gold/copper targets that are of some interest ....and there is also the Big Ledge zinc project near Revelstoke B.C and the company has a very well located land package in Manitoba for nickel exploration potential.
djstone56 wrote: Thanks Tad and yes it is good to see both Eric Sprott and Dave O'Brien adding to their respective positions. Too many times, Management of these small cap/junior mining companies rely on cheap options instead of participating in pp's or buying shares in the open market. Dave is an exception to the trend and with his knowledge of the properties, his confidence to increase his holdings gives me confidence in our prospects going forward. Do you know if the plan is still to spin off the molybdenum property and if so, when. Thanks in advance.
GLTA !