Its a more bullish play. Say you bought the warrants now at .04,...

Its a more bullish play. Say you bought the warrants now at .04, 100k worth, you would have 2.5m warrants. Then say someone else just bought the stock around 0.23 for around 435k stock.
Then your bullish thesis was correct and the stock went to say 0.3 by end of March. On the stock you made 30.43k which is a great outcome. The warrants however would be worth somewhere around 0.1 so you would have made 150k. Could probably sell some and free roll the rest.

The risks with warrants are firstly you can lose everything if they expire out of the money. Then capital raises sting as you dont participate but they knock the price down, this has happened to me before. Ironically takeovers are sometimes very bad if the takeover is below the strike price. There are also usually redeemable clauses where the company can force you to turn them into stocks if they get above a certain price so you need to be able to fork out the cash. For this reason warrants actually taper off if you get a really good run on a stock as redemption becomes expected since its in the company's best interests. Also since redemption is dilutive the share price tends to slow down after the strike due to factoring in the extra potential shares.

On the plus side, usually insiders hold a lot of warrants so its an incentive for them to make sure they are in the money since its sort of like a bonus payment for them. So you wind up alligned with the insiders by owning the warrants. HTH

Loving this company, that last set of drilling linking the two deposits is wild. We have a winner here, time to sit back and let the pieces fall into place. I'll be trying to top up on any pull back.