Is FDR’s financing position strong or very strong?It’s no secret a company will always get better terms if it can raise money well before it is needed. FDR is making all the right moves to win on that front.
Since August 10th our company’s shares have traded a fair bit between $0.40 and $0.45, touching $0.50 briefly, as determined buyers kept chewing steadily through the remaining PP sellers. Updating my earlier guess, perhaps we now have another Cdn$600 or 700K to go. 10-15 trading days’ worth at current volumes and prices.
If the next drill results, quite possibly arriving by the end of August, include a boomer hole, none of that math will matter any longer. But decent grades and intervals on a couple of step-outs will work nearly as well.
Quietly sitting in the background are the warrants from the March PP – another $2.5 million waiting to flow into FDR’s coffers. Easily enough to drill an additional 20,000 meters, given management’s impressive efficiency with our money to date. I could not find the relevant Sedar filing, but I suspect the warrants include a forced-exercise clause once FDR closes above $0.35 for, say, 30 days. We have done so for 12 days now. And the prospect of continuous news flow ought to keep our share price at least as firm as necessary.
To answer my original question, having plenty of runway plus fast flowing drill results means our next financing might not even need warrants. In fact, it might carry us all the way to outlining and indicating a resource compelling enough to bring the first buyout offers. At a minimum, a financing position strong enough to make FDR a very strong trade.