The priority for these funds is to get the MRE sorted for El Palmar. As Duffy said at the same conference, they "...are in active discussions to bring in a partner for our El Palmar deposit". So, they already have the interest, they just need the MRE to allow them to drive a deal.
Because they already have the drilling for El Palmar, they would also have some sense on what a MRE will look like. To have that officially quantified moves it into a "real" category and given the "nearology" of El Palmar to others on the Toachi Fault (SolGold, Llurimagua) and their valuations, then $23m market cap is probably about the bottom.
Hence why I think this capital raise is a smart move. Gives them the $ to create a real valuation point for one of their assets to drive the share price up. A deal may even see a few "buy-in" $ in bank as part of the deal, but more importantly then allows focus on Limon and a MRE there in 2025.
As a target, a 2.5c share price still only represents a bit over $100m market cap. Possible if they do the right deal on El Palmar.
STM Price at posting:
0.6¢ Sentiment: Hold Disclosure: Held
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