Its hard to find a reason to invest in VAN Kathy unless you are a soph and have previously committed to this co. In this case you almost have no choice but to support the co. otherwise you risk to lose it all. This is why Bruce is there; substantial amt of personal wealth invested so there really was only one option and that was to take control. This is true of many on the register. At this stage the co. is all about protecting the interests of a select few rather than the ordinary SH. I have to state, this is my opinion. Given this I dont believe support from sophs is necessarily an indication of confidence, rather an attempt to keep the co. alive long enough to capture a return. There's a big difference. Im not going to go into detail on this pt. but ill summarise by saying the primary focus of VAN is on a brownfields development. i.e what can they extract from a known gold deposit.
CRs are going to be a recurring theme rather than any other type of financing arrangement. The credit/asset quality isnt there but what else would you expect in a small cap. Be prepared to cop heavy dilution if you dont have the cash.
The MD is a good appt. Unfortunately it comes with a $350k pa salary. Thats huge based on cash on hand in addition to the drilling and planning that needs to occur. How many months until the next CR, 30mths? If yes, get ready to fork out more money. Hopefully the SP will be higher at this pt but that means little as most LTs are underwater. It would take a SP in the dollars to get back their original investment. This was once a possibility but not now.
I hope Im 100% wrong as I like VAN investors and this forum. Best of luck and invest wisely.
VAN Price at posting:
15.5¢ Sentiment: None Disclosure: Not Held
