Hi Worny - I see the point you are making about regarding this...

Hi Worny - I see the point you are making about regarding this as another capital raising, but I still wonder whether or not this was the best way to go about it.

I find that management is an extremely important component as to whether or not an exploration company ever gets into production or the state of health of the company once it does. A company needs to make as efficient use of the equity we provide as possible to it to ensure we get the most out of our investment.

Is CUR doing this right now?

From the presentations I have seen Mark give and the announcements made, I was under the impression that a reasonable level of debt financing was available to CUR to help get its products to market. I would much rather prefer debt financing to equity financing. In my view, CUR only needed enough equity financing to get the trial mining up and going - that was reported to be just over a million. Maybe I am misreading current market sentiment, but I would have thought that would have been pretty easy. The proceeds from the trail mining would then be leveraged by the debt financing to get to stage 2.

$1.5m could have been raised with a 1 for 6 issue at 25 cents (roughly 6 million shares). Instead, we get effectively 35m new shares at .24-.26 cents. That, in my books, is not making the most efficient use of our resources. If we can believe their numbers, then we really won't need debt financing. This will all be done with equity.

I found it interesting in the AGM presentation that CUR gave a value of the merger at 24-26 cents for CUR holders. The range given due to the valuation of GGY. Since I calculated the cash alone to be worth 24 cents, GGY really isn't bringing anything else to the party.

Except for management, of course. Given what GGY is trying to pull off, maybe it won't be so bad being on their team.

Despite the above rant, I am more likely than not to accept the offer. Running the new numbers shows this still to be an undervalued enterprise, and one that will be significantly de-risked in getting to production. Not as good as before, mind you, but still good.

If the CUR SP comes closer to the implied offer price (around 40 cents today), I may decide to give it up and sell on the market. But as it stands, CUR is still good value - the shares at 32.5 cents earlier in the week were too tempting to pass up so I picked up a few more.