@travelbug2Don't get me wrong, it's absolutely a positive, I'm a...

@travelbug2

Don't get me wrong, it's absolutely a positive, I'm a big believer in the opportunities ahead of us, and I really like the team who have been recently presented the face of the company in Duncan and Christine.

BUT there's a lot of work, and generally a fairly long process before "interest" turns into formal negotiations and a signed agreement.

Obviously it is impossible to have a bidding war with 1 suitor, and having "multiple" is awesome.

BUT Drilling is currently planned for late August which is less than 33 days away. I'm unsure how much the campaign would cost, but I would say if the ground is so prospective my preference would be for management to try and realise as much value as possible by proceeding with the initial drill to confirm the copper is there.

I completely understand the risks with this strategy, but what would you say the ground worth now, pre drilling results?

I mean, our MC is only $11.6m and that is with our stake in the 64North Project which is a massive nearology play, so I don't think it could be much more than a couple of million at absolute best, and that is hardly enough to prevent a raise.

As per the Quarterly today, have earned 42% of the 64 North project, which is great, but we need to spend another $4.7m USD (A$6.4m) in the next 2.5 years.


Of course conversion of the 160m odd options will help pay for this should our share price allow for this, and there are 3 lots worth a few million dollars that need to be converted before July next year but that will only happen if they are in the money.

Unfortunately I think to say "no more cap raises" is going to be unlikely. Hopefully the next one is the last one for a long while however.

A raise at 10c off the back of good results is probably the best outcome we could expect considering we have a clear path to 60% of 64 North. I think we can earn up to 80%, but I can't remember what is required to earn that.

We need to be mindful that we have only had a limited drilling campaign, and should the assays come back with significant gold, deeper and more comprehensive drilling should be started as quickly as possible to prove up as much as possible (obviously after appropriate research and planning has taken place).

Redbank may be a good fit as a potential partner, but they only have a $34m market cap with $6.5m in the bank as per their most recent presentation (https://hotcopper.com.au/threads/ann-redbank-copper-ltd-presentation-gm-july-2021.6162467/).

I can't see why they would prioritise their land over ours for spending that money, in fact, it would be crazy of them to do so as it would have limited upside for them.

Even if they did decide that our land was better than their land as the immediate prosptect, how much of that $6.5m do you think they would be willing to part?

I know it sounds negative, but I am actually really bullish on the company as this is my second largest holding. In saying that I am also realistic around what is required financially to go beyond "explorer" should the gold be there, and that is at least 4 more years of work and many millions of dollars.