RE: All so positive, but the MC................Yes, but it can also be avoided if they prove up reserves getting the value of the company higher (ie: higher stock price) so they raise money at higher levels. The central area is right next to two mines so there should be an opportunity to use existing facilities for processing, I'm guessing that is exactly the plan. I'm not sure if the Xianrenyan (it is going to take some time for chinese names) area is within trucking distance but I think so.
This will keep costs down but they might just prove up enough that the existing facilities won't want to provide the throughput TVI wants, so TVI might have to build there own facilities. The cost of getting up and running can vary immensly. There are peasants mining it right now under agreements with the prior owners who will be kicked off when/if TVI makes the final purchase decision. It all depends on the scale the want which depends on number of tons, grade, and the mine plans scenarios in the scoping and feasibility studies. These are a year or two away though. Right now we just want them to drill and prove up resource and get the stock price higher. All this consolidation talk is kind of premature, but it could happen down the road.
Big floats are nice for liquidity, but they make it tougher for earnings/share which is eventually (theoretically?) how we want to be priced. Reserves in the ground have value though, and we have our own drilling company. Check out the story on Silver Standard Resources, pretty much all they do is buys reserves that are only economical at higher silver prices (>6oz).
Right now I'm not worried about the float or market cap.
KD