Post by
northernbull on Mar 31, 2009 12:17pm
Thanks BamBam
Thanks for that post. I couldn't agree with you more. I'd love to see this stock pull a rabbit out of the hat as well and figure I've lost enough to just sit on it and see if it survives, but others here are way too optomistic.
Again, a million and a half is peanuts. We can't get much accomplished for that, as we will likely be very reluctant to spend much on anything but keeping the lights on and making payroll. We're a 2.5-3 cent company with already around 100 million shares out.
Even if great times are coming for junior miners, why would anyone give us enough money to do any substantial exploration for a reasonable price? Any financing would be extremely dillutive to the longs of old. Even if they gave us a 100% premium on the current share price.... heck, lets say we even got 10 cents a share (for those optomists out there): Let's say we want to raise 5 million to explore a few of our properties over the next couple of years: That's 50,000,000 more shares out, a 50% dilution from here. At current levels, we'd triple our share count. And that's with a 10 cent price, which is highly unlikely. Not to mention tons of quality juniors that are near production screaming for money. Who would you give money to first if you had cash to give out?
Someone mentioned they were in a good position to create their own production. That requires tens of millions and a great deposit. I realize there are baby steps to take and that finding good holes can lead to higher prices and better financings, but come on... 50 cents by summer? No way anyone pays 50 cents for a share of ours by then. We couldn't mobilize a drill and get results by then hardly. We'd need something other than Karl's old tricks of purchasing more property or creating another JV to lift us to those levels.