I had a good talk to Patrick today Overall I believe this to be a good outcome - although it may mean temporary drop in share price. It will allow for a faster synopsis of the Area.
My feeling is that there is gold for mining - so if that is the case there is huge upside
In particular I asked:
1 For Tony to merge and not selling to me means this has enormous potential. Are there new results coming out? 2 Do we need 30million dollars, if we needed less to start mining wouldnt it be better to raise money, less dilution 3 2:1 share exchange - are we not undervaluing the potential of COV?
The answer to point 1 was deleted as Patrick didnt want to talk for Tony , but I think fair to say Tony wouldnt be in this if he didnt think there was money to be made.
His answers
In answer to your queries: 1 2 If there’s a 3 to 5 Moz resource at Corvette it will take ~ $15 M to drill out (+/-$5M) , then theres metallurgical tests, environmental etc. Ideally we’ld like $20 M now. Raising money in smaller amounts as the project improves exposes us to a. Market sentiment, have to keep liking gold stories, we’ve seen how volatile the market can be. b. Continued good results on Plumridge. Any little setback could have a disastrous impact on raising price. 3 If we raised money now it would be @ ~ 20c. The likely price of this transaction is ~ 25, the IER report will decide that. We might be undervaluing the potential, but we are reducing the risk substantially.
"BD", We believe this is the best way to continue to aggressively explore at Plumridge and Corvette this transaction will enable us to do that.
COV Price at posting:
21.0¢ Sentiment: Hold Disclosure: Held
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