Why are so many so scared of a bit of dilution ?
If you are a holder in a lifestyle company, I can understand, as I too would be petrified.
But in EQR, what we have is a very capable, progressive and responsible management team who, without doubt, are adding value to this company, positioning itself to be a dominant player in the tungsten space and along the way have caught the attention of Governments as well as some big global players who also want a position in the tungsten space.
Make no mistake, Ollie, Kevin and team are at the vanguard of these efforts - with them the big players would be floundering and scratching their arses just like Oaktree were after Ormonde caved in until we came along and started turning Saloro into a force on their own.
These guys will absolutely categorically take this company to places you cant imagine.
This CR (however much and whoever to) and the funds from QIC will enable us to roll up our sleeves and get into those deepening, high grade veins and extract the rich and very profitable stuff, whose price is continuing to rise. With our current BFS only representing 15%, this next underground level of drilling will be vital in elevating the MRE's inferred and indicated up the tree to be JORC'd up and officially added value to our NPV.
Currently our NPV is about $310M, Saloro (not yet official) is probably $120M+ - and we are only capped at $103M ? Ridiculous !
Don't be so concerned - we will get it back and then some.
I am waiting for that European announcement Ollie referred to which will open up European investment or financial support (perhaps Govt) at "very attractive" terms - this will surely be a precursor to the next step on the acquisition path - very exciting.
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