RE:Re: Stuhini Private Placement Increased to $1,900,000Made my annual pilgrammage into PDAC on Monday. Always good to catch up with Stuhini CEO Dave O'Brien and some of his mg't team again. Good group of people, very down to earth and shareholder friendly. They are large shareholders of the company and their interests are directly aligned with ours.
Checkmate, it good to see you again, too !
Monday's news release of a further $400,000 increase to the current financing is great news !
https://www.newswire.ca/news-releases/stuhini-exploration-ltd-announces-an-additional-increase-of-private-placement-to-2-300-000-831860021.html Tack on another 1,000,000 shares at $0.40 and 500,000 full warrants exercisable @ $0.50 to the running total of the still fairly tight share structure for Stuhini.
When (not if) this PP is fully subscribed there will be approx. 45,917,094 shares issued and outstanding including the 1,750,000 shares that will be issued for the final option payment on Ruby Creek.
There should be approx. 8,207,178 warrants (plus assume some broker's warrants ) exercisable over the next two years that, if fully exercised, would see approx. $3,800,000 flow into treasury., resulting in roughly 55,904,372 shares o/s on a partially diluted basis.
Bailey2 , you asked about a PEA and spin off some time ago. With the additional money coming to Stuhini with the increasing interest in moly, there may be a change in strategy with the timing of a spin off of the company's other exploration projects leaving the moly deposit as a stand alone company. With the flexibility of additional cash from the twice increased size of this financing, the thinking is it might be better to put some additional exploration work into one or two of their other projects prior to any spin off and also get the PEA completed on Ruby Creek completed. So maybe we'll see a few holes drilled at one or more of their highly prospective targets this summer, like Silver Surprise at Ruby Creek, or punch a few holes into their project on the South Thompsom Nickel Belt, or drill for gold at their Que project in the Yukon.
Molybdenum prices appear to be consolidating the huge increases experienced over the past few months. Daily spot price down to US$41.05 with 2-15 month futures contracts pegged at US$33.85.
Hoping to see moly price settle in to a trading range above US$30.00 with supply deficits projected compared to demand for the next 4-5 years.
With the current exchange rate of $1.37 and spot price of US$41.05, the inground value of the molybdenum project at Ruby Creek is close to C$27 Billion. Hopefully we'll get a fair idea of CAPEX for a processing plant when an updated PEA is completed later this year. In all likelihood, it'll be at least $1 billion CAPEX.
IMHO, the longer moly prices remain firm, the higher the chances of seeing a large mining firm step up to either buy the moly deposit outright, or see a strategic partner step in to help advance the project. Moly price cratered during the credit crisis in 2008-09 which caused the former operater, Adanac Moly Corp, to enter creditor protection and eventual bankruptcy. i know aot of investors are also still a little leary from 15 years ago, so the longer moly prices stay high, the more we'll see new money flow into the moly space again.
Again, when moly prices were last at these price level, Adanac Moly had a market cap of C$300 million. With expected 45.9 million shares at a $0.55 share price, Stuhini will have a market cap of only $25.3 million. Stuhini remains extremely undervalued considering their pit constrained 477 million lbs in measured, indicated and inferred molybdenum resources.
GLTA !
Tad wrote: Based on todays's news release :
https://www.newswire.ca/en/releases/archive/March2023/02/c2369.html If the financing is fully subscribed, along with the announcement last week that the final option payment of the Ruby Creek Project will be made with funds from this placement, the share structure of Stuhini will be approximately :
44,917,094 shares issues and o/s
7,707,178 warrants exercisable at .35, .50 and, .60 52,624,272 shares on a partially diluted basis
Molybdenum pricing remains firm with daily spot price at US$43.54 / lb.
With 477 million lbs of moly in a pit constrained measured, indicated and inferred resource, the inground value of Stuhini's Ruby Creek moly deposit is about C$28 Billion.
Stuhini's share price is extremely undervalued. Current matket cap is about $22 million . When moly prices were at this level in 2008, the former operator of Ruby Creek, Adanac Moly Corp, had a market cap of C$300 million.
GLTA !