“For this raise, we had a focus on balancing cash requirements with what we see as short term, low cost value adding for the Pantanillo Gold Project, particularly converting and possibly expanding the high quality qualifying foreign estimate of 47.4Mt @ 0.69g/t Au for 1.05Moz Au to a JORC compliant Mineral Resource, keeping in mind that the qualifying foreign estimate is an NI 43-101 compliant Mineral Resource and is consistent with reporting practices of major gold producers such as Barrick, Newmont, Agnico Eagle, and Kinross. Pantanillo is a large heap leachable gold porphyry which is amenable to open cut mining and heap leach processing, providing Flagship a material gold inventory that leapfrogs the Company several steps closer to feasibility and production.”
So the kitty got about ~$940K in cash (after costs 6% paid). The other $249K is debt swapped for equity (by CN holders and director loans).
PL running the company on the glitter of gold dust. Keep focused on the prize (Pantanillo) and re-read the Apr 14 annoucement which I highlight below:
and
So clearly there must be changes - beggars can't be choosers - so something must go and that is IMO going to be Tama Atacama. Clearly RKLP wont get any funding (best if it can be sold for something - can't see FLG paying any holding costs). As for Tama Atacama, FLG might be abe to re-jig the option payments (can't see anyone wanting to pick them up anyway) but that still leaves the holding cost payments to Chile Gov't. We'll see soon enough.
So that leaves Rosario. Not enough to drill, but enough for some field work and again there will be holding costs. And then of course there a working capital expenses.
This raise is simply trying to get value injected into the market cap. Gold has value that is easily measureable across peer companies. Looks like trying to get the next raise in at ~$0.15/sh ... and probably another $3m target for funds. Thinking 4 months time when JORC MRE released maybe. Don't see the extensional drilling to increase the resource as feasible with this round of capital raised.
That's my thoughts presently
Add to My Watchlist
What is My Watchlist?
