Compare to say JKA, with a mc of $50M, pre-spud in Tunisia. But...

Compare to say JKA, with a mc of $50M, pre-spud in Tunisia. But they also have multiple projects, all of which are very high-value propositions and free-carried for one with a major.

CRJ have one high value project in East Africa and are maybe 6-8 months away from spud. They do have a potential income stream of $3M to come from BHP, so let's say they'll need another $4M to drill the first hole and a bit of working capital, in addition to current cash at bank.

Currently 797M FPOs on issue

CR possibilities:
$4M @ 0.02 = 200M new shares, for 997M shares on issue
$4M @ 0.03 = 133M new shares, for 930M shares on issue
$4M @ 0.04 = 100M new shares, for 897M shares on issue

So, even with a more than doubling of the current sp, we're looking at 100M additional FPO issued, which would be 13% dilutionary to the registry.

More relaistically, let's say a CR comes at 2c (18% above current price). This would be 26% dilutionary to the registry.

So, while i think a mc of perhaps $25-30M, pre-spud, would not be unrealistic, in the context of the additional shares issued, we're not necessarily looking at a 100% gain in the sp, since we need to account for the new shares. Even so, the risk/reward at current levels for a 50-75% gain this year seem quite favourable and i'll be looking to take a position as the cost of the works program is announced and funding is crystalised.