GGG spent 10's of millions of dollars growing their resource to nearly a billion tons, including several satellite deposits. Why?? At the time, they didn't have permission to mine, so why spend money growing a resource they couldn't take out of the ground?
If they had considered this, they could have spent the money on their engineering/environment/PFS/DFS studies, instead of flushing it down the toilet.. They should have focussed on getting one area up and running, and then stepping outward when they had permission to mine. Kvanafeld has a mine life of (according to them) over 10 years, so why waste money on exploration at such an early stage??
Hindsight is always 20/20, but a prudent investor should avoid this company like the plague.
BTW, issuing shares at 10c with a free attaching option should value the cap raising below 10c a share. They are essentially saying "Give us 8million dollars, and we will give you 80 million shares, and 80 million options". The market will correct itself over time to reflect this. Without any positive news, a shrinking REE space, a deposit in a horribly inhospital/expensive country, and massive management compensation packages, GGG will be lucky to make it through the next few years, and single digits are possible in the near term.
GGG Price at posting:
11.0¢ Sentiment: Sell Disclosure: Held
