I think that the Board really expected to have SPQ do all of the exploring and then development (if the exploration grounded that) ---- or at least did expect that up to a particular point in time.
Riding high at 7c with no confirmation yet of the mineralisation being of the porphyry kind and with a near $100m market cap, surely all that was needed for the funding to flow in was an expert to declare that Bottletree was a porphyry system.
But hey, that did not happen. No-one in the capital raising field was confident about porphyries. Peter Hwang said that after the raise at 3c. Those holding or watching the share price at that time would know that the share price was manipulated downwards by Mr. X so as to get to 3c. There was shock and horror about the big SP drop, then more of that when the CR was announced, free options being offered as a sweetener too.
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Then away they went, drilling holes at Cockie Creek. 2 aims there: 1. expand and modernise the JORC and 2. explore .But after 7 very promising holes and the Board coming to realise that CC could be another big porphyry system, it left CC to return to Bottletree. It was stated at the time that as the drilling was ahead of the assays flow, it was better to suspend it.
While all of these things happened, the MD hinted at a possible demerger/spin-off, a joint venture with the nickel tenements and a report on exploiting the gold at Steam Engine. However, none of these things have come to fruition.
Then, we find out that only 3 new holes could be drilled at Bottletree, money running out it seems.
Then, we get another sophs CR at a heavily discounted 1.2c so as to keep the joint afloat, or so it seems. But this time though, they were not favoured with listed options.
Then, we get told that because of the wet season, there will be little exploration done until it ends, and probably April.
So, this is where the company now sits. There is about $2m in the bank. Assays are awaited on the 3 new holes at Bottletree, but the QAR informed that they were aimed at wall rock porphyry, so no core results are anticipated. And .... a report might soon come out about Steam Engine (more drilling hinted at though).
There is nothing to excite the market at present, and so its MC languishes at about $20m, a far cry from what we now should appreciate (in hindsight) an inflated $100m.
The BIG QUESTION: where will the next lot of capital come from?
1. The sale of an asset?
2. The issue of more shares? - either by a cornerstone investor or to shareholders or sophs? In any of these possible instances, the issue price should be a 1c or lower, as things currently stand. It is too late to get a cornerstone investor in as the SP is too low. A share issue to shareholders may not work as most retail holders would probably be afraid to risk more money. Sophs have probably had enough.
Therefore, what is salable?
The highest valued asset is Steam Engine. Sell it to a gold producer. Get a royalty for the extra gold. Sell the porphyry gold to the same gold producer. Problem solved!! Money in the bank and an assured income stream to boot.
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