Strongly doubt a placing for EXT. Couple of reasons:
1) At the last quarterly they had $28 million cash on hand with a activities usage rate of about $1.956 million a month. In addition they have collected $0.3 million per month from investing activities. So their net cash usage rate is about $1.6 million per month. Cash on hand is $28 million so at current usage they can keep the exploration going for another 17.5 months before they run out of cash! At the current rate of drilling and testing this period is more than sufficient to prove a sizable (world class) resource.
2) Ext has a desire to keep the share book (number of listed shares) on the smaller side. It wasn't that long ago that all of us long termers went through a 10:1 consolidation.
I believe we are looking at Kalahari ensuring its ability to buy more shares in EXT without EXT issuing new capital. This all points towards the August zone 2 jorc release. KAH has stated that it is the continued quality of the drill results that have driven the interest in their cap raising. When (not if) EXT are sitting on a confirmed resource of 250 - 300mlbs of Uranium ore then you are going to need to be cashed up to increase your holding in this stock. KAH want to continue to be the largest player at the table.
Luck is the merger of preparation and opportunity. KAH are simply preparing for the fight. The opportunity for this deposit to be sold will come. KAH and other shareholders will make millions (billions) from it.
Just my thoughts. Paytrade.
EXT Price at posting:
$4.90 Sentiment: LT Buy Disclosure: Held
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