Gonna be a slow burn IMO but I like the fact they bought their own drill rig, haven’t seen that from any of the other juniors I’ve dabbled in. Should be well utilised over the next little while but there’s also potential to dry lease it out when it’s not in use to mitigate some of the cash burn from corporate overheads etc.
Nevertheless think we will see another cap raise early next year. They had $2m cash end of September so assume at least $0.5m has been chewed up since then including the drill rig purchase. With drilling ongoing into January they’ll want to re-raise again mid to late 1Q next year IMO. Hopefully they do it as a renounceable rights issue again, not a structure you see often at this end of town.
NES Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
