RE:Being PessimisticThe press release I believe is to show additional value beyond the present excitement . The Saskatchewan land position is not a solid holding, in that there are a lot of parcels that make it a checkerboard effect. Its of great strategic value in that its already put together....anyone who wants to establish a position, or expand on their existing footprint will have to come hat in hand to ETL.
The Sask land can provide ETL with a few options going forward.
1. A Purchase & sale agreement with an existing player in the area, or someone trying to establish a position. That sale agreement could be a source of cash for development of the Clearwater project ......without share dilution. It could include a Gross overiding royalty so that there is some legacy value beyond the cash price.
2. A farm in agreement with either an existing area land holder, or again someone trying to establish a footprint. The agreement might contain terms that would carry ETL on a free ride/ partial ride to production, for a % of revenue after expenses are paid out.
3. Maintain the properties ( keeping the claims up to date) in the hope that they become more desirable ($) as the extraction technology becomes more established.
I dont think the company is in anyway taking their eye off the prize...... they are just making us, and the investing world, aware that there is additional value beyond the present project. I think that this "second basket" as it were, is part of a very smart strategic plan they have in place.
ETL's technology works to the extent that it has been tested. It still has a long way to go to Cookie cutter prodution and scale. ETL has a lot of similarities with another Calgary company that I have a position in.... EXRO. The shareholders there are clamouring to push the share price and are in some cases expecting instant sucess. There are cheerleaders here too. Its great to see the excitement.....but, like EXRO this is only the 1st quarter of the game. Like EXRO, I think this is the best team on the field, but we should realize that things take time. Imperial as a partner/investor is incredible.
GLTA
MC