Touchstone Exploration Inc T.TXP

A reminder......................

[Proselenes]

Just a little reminder.......

Which means of course.......all development costs for Coho, Chinook, Cascadura can be covered by borrowing more (and the facility is up to 50 million - currently only 20 million and only 15m of 20m borrowed)

Once Coho is on line later this year......Royston in 2021 will be paid for from operating cash flow........

Read the quotes below from Paul....... !!!


https://tinyurl.com/y49slof3

Paul Baay said the firm has enough financial firepower to finish drilling Chinook-1 – the hotly-anticipated, third well on its hugely prospective Ortoire exploration block that spudded earlier this week.

What’s more, he said the firm will have enough funds to follow up with a fourth well called Cascadura Deep later this year.

With a current cash balance of US$11 million, boosted by a recent US$2.8 million VAT repayment and US $9 million placing, Baay added that no plans are in place for Touchstone to raise money in the foreseeable future.

“It makes no sense to dilute investors through an equity placing,” he said. “Not when we already have the cash to complete this work ourselves.”

................

Should Touchstone repeat the success of its first two wells at either of these opportunities, then Baay is once again highly confident that equity investors will not bear the brunt of development costs.

This comes down tothe firm’s recent closure of a seven-year, US$20 million term with Republic Bank – one of the Caribbean’s leading financial institutions.

Touchstone has already withdrawn US$15 million to satisfy obligations relating to its previous US$20 million credit facility with a Canadian lender from which it has now switched.

But Baay sees the relationship with Republic as a much more long-term arrangement that will open up increasingly as Touchstone grows, providing headroom that other explorers can only dream of:

“This is a real bank – there are no sweeteners, no warrants, no royalties, and no covenants until 2023. Republic is capable of lending up to US$50 million without syndication, so this means we can go back to them as we grow and make more discoveries on Ortoire, and they can grow with us.

It’s a super simple story right now; we’re going to drill the next two exploration wells, and away we go.”

The case for a material fundamental re-rate from Touchstone’s current market cap is clear.

[Wildcattter]

This post has been removed in accordance with Community Policy

[Goaweigh]

That's a great reminder and Thanks Means that no more paper will be supplied from treasurey, it must all come from the market. I'm looking forward to Cormarks update which should reiterate their original cash flow model now that Chinook has been significantly derisked. And as a result maybe a price target that has been revised upwards too.

[Davidblackgreen]

And while the road to Royston is being built maybe drill a second hole into Coho which will very quickly add $600,000 plus to monthly cashflow for a $3m spend. And maybe have a look at what's below? There is a big juicy target at 9,200 feet! Oh and once the NGC deal is finalised assuming they take over the Coho pipeline the $2m cost of that will come back as a check. Mr Baay has lots