The one thing that I take some faith in is the subtle undertones in the recent few announcements. They are subtle but seem to suggest to me that money won’t be coming from broad brush CR’s....they’ve rung that cat dry over last 7 years. A few examples of the subtle points;
1) the announcement this morning re East Timor - how could an $8m MC company with bugger all cash be seriously considering another project?
Answer -> “ Benefiting from first-mover advantage and the assistance of key stakeholders” Take note - key stakeholder. Not named, but draw your own inference. I wonder at what point they will need to disclose as material info, who those stakeholders are and what they are contributing?
2) the very bold statement under “Exploration Strategy” - “The Company plans to conduct exploration geared for discovery and, if successful, project rerate. Exploration is planned to initially focus on known forms of mineralisation and test battery metal occurrences. Reconnaissance, various phases of sampling, followed by drilling is the projected exploration pathway. With respect to Paatal, the P2O5 deposit that is already known within the EL application area will, if exploration proves successful, be fast-tracked for trial mining as a bulk commodity.”
Almost sounds like we’ll be shoveling the stuff out early next year. And where will all the money for that come from? - another CR with the success rate of the last one?? I don’t think so!
3) the announcement this afternoon on Cerro Rayas tenement expansion -> “An airborne geophysics survey, like the AMAGRAD survey completed at Riqueza, is proposed. Possible geophysical targets would be added to the walk-up targets already known, including all the mine working centres and mineralised outcrop areas.”
AMAGRAD survey hey - another $6-700k. Was that the figure S32 tipped in for the last survey?
We are talking about a program of several million dollars here, let’s say $2 mill conservatively. At 0.003 that means an additional 666mill shares issued which represents another 20% dilution.
Clearly the current CR process is not working with existing shareholders, so they’ll struggle to get any of us putting hands in pockets for more vapour announcements.
So what’s the missing piece?....join the dots.
ICG Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
(20min delay)
