Fareast Capital comment

Los Cerros is adding grist to the mill
During the week Los Cerros (LCL) provided further insight
into the size of the geological system from which it has
been reporting very large gold intercepts, at its Quinchia
Gold Project in Colombia. It has commissioned geophysical
surveys (a drone-based magnetic survey and a deep IP
program) to validate, fine tune and extend the regional
model, assist in drill planning and to potentially identify
more targets along key controlling structures.
While the company has a good understanding of the
Tesorito South projects,with each round of drilling
confirming and expanding the dimensions, the bigger
picture involves an appreciation of the possibility of a
multitude of discoveries in close proximity. This is not a one
card hand.
For those of you who are wondering how this $87m
company is going to continue to fund the drilling, keep in
mind that there are options that come due in August 2021.
At an exercise price of 16¢, this could lead to an injection of
$8m. If the share price maintains recent levels we should
expect a good proportion will be exercised and/or
underwritten.