Some bullboard participants, myself included, are starting to show some frayed nerves. Unfortunately, the nervousness is not unsubstantiated. Signs indicate that something isn't quite right.
Starting a couple years back, Korea Zinc was supposed to be Woulfe's dance partner. Despite some rumours that Korea Zinc was short of cash, I checked their financial records. In 2009, net profit was $364 million USD. In 2010 and 2011, the net profit was $462 and $694 million USD respectively. The source is the Korea Zinc website. Korea Zinc was willing to buy equity at .30 share when tungsten prices were $130/mtu less then todays market. This was before a bankable feasibility study. Before all of the additional drilling. Yet now,, after all that time and with a supposed resource, we get diluted at .20 cents. It makes no sense. You think Korea Zinc, having had a member of the Board, having done significant due diligence, would jump at .20 cents a share.
I have similar concerns with IMC. By all accounts, IMC made a good business deal. WOF did what it had to as a junior to get the necessary financing. Woulfe has repeatedly stated that IMC was paying the equivalent of .55 cents per share. Yet months later, we need to go to market for .20 cents? Again, it doesn't make any sense.
Almost four months after the TetraTech bankable feasibility study, IMC is on the fence. So much so that it isn't willing to pick up equity or extend any additional loan. The second dance partner who doesn't seem to want to seal the deal. This makes me very nervous.
What I do know is that Woulfe has a serious cash burn. The $5 million received from IMC is gone (in around 5 months). That means the extra $5 million we should raise will last a maximum of 5 months. Considering IMC has 60 days with the agreement, that means we at most have three months before we need further dilution.