Lex,The biggest concern for DRG is that it doesn't have an...

Lex,

The biggest concern for DRG is that it doesn't have an immediate means of increasing the SP to raise capital. So they need to do one of two things.

1) Decided whether Teeg is worth exploring further and if so, drill the crap out of it to get a decent resource that can be valued above current levels. If they increase the resource significantly, the SP will rise and raising capital will be easier. Alternatively, they can increase the resource and then sell the licence to raise capital for a different venture. Currently they are drilling a few holes here and there without progressing the resource further. What they are currently doing it treading water and wasting time and money.

2) Concede that Teeg is also worth nothing and stop wasting time and resources exploring the tenement. Use remaining cash to buy an undervalued licence in a foreign investment friendly location and hope the market likes it, in which case the SP will rise and capital can be raised.

The longer they do nothing the worse it is for shareholders because cash ends up being spent on admin. However, the directors still get paid regardless. The directors may feel that this scenario is the best way for them to recoup their losses from buying at elevated prices.

Anyway I feel they are in a bit of a pickle. The difference between shareholders and directors is that the directors can continue to draw a salary to recoup losses. Shareholders cant!