Claude Res Inc CLGRF

Capital requirements

[oddykog]

I am very much looking forward to seeing where Claude takes this operation in 2005. They are still drilling all the structures they have found gold in. They also have the capital expenditure for the mill expansion going on this year. On the other hand, they have been running their cash balances down quite a bit over the year and the two small offerings of flow through shares don't look sufficient to meet their capital needs. There seem 4 solutions: 1) Make a substantial secondary offering at these low prices and dilute the existing shareholders. 2) Get their capital out of the oil and gas business and use that 3) Do a deal with Placer Dome on Madsen that provides some cash. 4) Partner with another player on Seabee and make the new partner put up capital. I prefer (2) or (4), but we will see