Reborn in 2013 with a new board and new focus, this company is now a Copper explorer with significant copper projects in Chile. They had 80m shares on issue and recently completed a capital raising, issuing 350m shares at 1c. So they have $3.5m cash to drill with.
Stats: Cash - approx $3.5m Market cap - $4.2m, EV $0.7m Share price - 1c (same as recent capital raise) Shares on issue - 424m and no stupid low options :)
Today they started drilling the Resguardo prospect which is a copper porphyry project. Previous small scale high grade (2%+ copper) mining had occurred here and they are now sinking 2 x 250m holes vertically into the breccia pipe. What will happen if they announce good lengths of high grade copper I wonder? Is there a good chance of this based on the previous mining here and the fact that this is a brechia pipe? I think so. Will they find good grades then go deeper into the actual porphyry with diamond drilling? I hope so. Theyve stated that chalcopyrite and bornite is evident underground here. Two of my faves.
Here's the image of what they are drilling into:
In addition to Resguardo there are 3 other copper/gold and copper/molybdenum large scale projects in their portfolio.
I guess the best comparison of a company who is well advanced but with a similar focus would be Hot Chili (ASX:HCH).
IMO big potential for some great results in the short term and little downside given the EV. 424m shares on issue is not too bad given they've completely changed the company. IMO $3.5m raised shows a pretty high level of confidence. Will these shares put a brake on any price movement? I would say not, given that other stocks with even lower priced issues of shares have rallied hard in recent weeks. Currently under the radar but with some shares available to buy. IMO liquidity will improve with price increases.
