Tectonic Resources like a lot of other gold juniors with advanced projects are on the radar for cashed up mid cap miners. The big end of town miners are more interested in other large caps and growing midcaps to bulster their resources. The mid caps don't have the balance sheets to leverage into the big league so the best way to grow is to aquire good juniors with advanced resources.
The cost and risk of exploration and development makes aquisition very attractive as a way of aquiring a critical mass of projects to survive longer term. The successful midcaps (most of whom are graduates from the junior ranks)that have now had a few years of solid cash flow are on the prowl for aquisitions.
It is logical that company boards would see now particularly as the right time to launch aquisitions for the following major reasons.
1. They have the cash on hand
2. Juniors are finding it difficult to get projects up and running due to increased costs and shortages of quality personnel
3. Depressed confidence in the share markets is making raising equity funding difficult
4. Debt funding for mining projects is a tough ask at present with tigher credit and risk aversion.
5 Investors in Juniors have not had much joy for some time and may be ready to quit if the offer was reasonable.
6. etc etc
Tectonic Resources are doing well to fly under the radar and are determined to bring on Phillips River as a company making project but I can't help thinking once they present the new Bankable Feasibility Study they will be targeted by some preditors. The one thing in TTRs favour defensively speaking is that a majority of shares are held by long term supportive investors (directors and ex-directors) and new cornerstone investors.
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