Resolute could hurl a 1 for 3 paper bid at OKU now and take it out. That's the equivalent to 44c and if they see resistance, they can add some cash pennies on top. These larger producers should be sucking up all they can down here while no one is watching. If the drill bit or the gold price turns, these things will only cost more. If either drops, people wont sell because the discount will be too large to the under lining asset value.
Things don't normally play out this way of course, because cooperates tend to have different trigger points. There is no screaming rush to do this just yet but ongoing results will only make it more obvious over time. It is not getting any smaller.
OKU has $18m in cash, so there is plenty of money in the kitty to keep drilling for a long time to come with no dilution. It is also trading at a 25% discount to the last $15m placement and most of that cash remains on the balance sheet.
The first resource statement might hit towards the end of this year or early next year.
The wild card is that OKU hits the mother load like Papillion did and then the stock takes off regardless. I actually think that is likely. The previous holes were extremely good and in a half normal market, the dial would have been seriously moved. This is bound to be a multi million ounce play and the market cap is sub $100m. dyor
OKU Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
