"Over the coming 12 months Red October plans to quickly secure suitable projects and move to conduct metallurgical test work and resource definition drilling at a number of sites in Kazakhstan with the intention of proving up a JORC resource. Our intention is to prove up these projects to the point where we can attract commercial interest from investors who see value in acquiring the projects and developing them........"
.......... also
"Red October Resources Limited is an Australian-based exploration company established to acquire, explore, evaluate and exploit global mineral resource projects. The Company seeks to maximise shareholder returns by actively evaluating new acquisitions and joint venture exploration opportunities in the resources sector."
>>>>>>>>>>>>Based on the above wording, I don't think ROS has any intention in taking Yellowstone or any other project to a fully operational mining stage off its own bat.
The time and cost of establishing a mining operation of any size is both time and money consuming and with considerable lack time from site preparation to selling actual product. In these circumstances, shareholders face length lead times, usual share price drops and considerable dilution of through various stages of capital fund raising.
My tip is that Yellowstone will be proven in size, a price tag applied and made available to the highest bidder - or let potential buyers do battle on market.
In & out and next project... thank you! No dilution of shares just increased company / shareholder value.
Another option would be a separate Yellowstone IPO with ROS shareholder benefits included in some form.
Raising money to get a venture of this size off the ground with an in-house operational mining intent is not what I see on the cards at all.
ROS Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
