Current shares on issue = 808 million
Current share price = 1.5 cents
Current market cap @ 1.5 cents = $12 million
Current cash on hand = $4 million PLUS
PROJECTS CONSIST OF:
Wolfhound Lithium, 100% ownership
- Grades @ 2.47%, drilling this quarter
- Lithium sector red hot with prices, along with demand rapidly increasing with supply currently unable to keep up to projections
- Project compared in similar aspects to a current world class lithium project in WA
Scotia Cobalt Project, 100% ownership
- Advanced cobalt-nickel Project with widespread cobalt mineralisation already identified
- First phase drilling plans underway
- Cobalt price has risen over 100% in 12 months to $55,500 USD per tonne
- Supply is literally drying up from the Congo with demand going bananas
Mayfield Project, 75% ownership
- Impressive zinc and silver results
- recent EM results very positive and further drilling is now underway
Chakola Gold Project, 100% ownership
- currently planning the first lot of drill holes
- has drawn parallels to nearby 'big boys'
Gascoyne WA Lithium Project, 100% ownership
- exploration licenses granted, project has expanded in size
- plans for initial field program at the site underway including soil sampling and rock chip programs
WHY HAS THIS CAPITAL RAISE HAPPENED?? ALL IMO/DYOR
CMY already had $1 million in cash before this capital raise and would have been well funded to tackle the drilling activities and all the planning that goes along with it for at least the next half year before needing to rattle the tin.
Now, we see a capital raise @ 1.5 cents TO RAISE $3 million, all to sophisticated investors - AT ZERO DISCOUNT - the share price currently reflects the same price these sophisticated investors have got in at so that is a positive for both old and new investors wanting to accumulate before incoming news.
In the recent company announcement on the 20th of this month, ALL DIRECTORS (I tried contacting the office and this was confirmed) were overseas in North America (where Broken Coast Cannabis are located) and discussions with the aforementioned company were 'progressing well in person' and that news will be announced to the market in due course.
IMO this CR is the company filling the cash kitty before throwing the majority of it @ BCC for a deal of some sort that they may have on the table. Why on earth would they raise money of this sort and cash up the way they have at this particular point in time?? They don't need $4m in cash to identify some more drilling targets or further exploration etc, the timing of this CR after what has been said seems to align perfectly with my train of thought- don't forget the 90 day deadline for the deal as well.
BCC are a MASSIVE Canadian Medicinal Marijuana company with aims of producing up to 11,000,000 grams per year @ a sale price of $5-$8 per gram, that is $55m-$88m revenue from the production and sale of its own cannabis. They also have their own niche product line and are continually researching and developing. With Canada relaxing its stance on recreational marijuana use and MM gaining massive traction in the medical world, IT ONLY MAKES SENSE/CENTS that BCC would look to make a deal with CMY considering Australia is closely following suit on both its view on marijuana as a whole and the idea of MM as a whole. A company like BCC on the ASX would be groundbreaking considering the footprint BCC has and how developed the company is.
WHAT THE NUMBERS SAY
- At a $12m market cap @ 1.5 cents with the magnitude of projects and the extremely high possibility of a deal being struck with Broken Coast Cannabis after this raise, there is A LOT of room to move.
- QBL have a MC of $28m off the back of a 50k investment.. really??
- SCU also have a rough MC of around $30m and shot from 1.3c to a high of $1.08, to now settle at 12 cents on the back of appointing one bloke to their board who knows a thing or two about cannabis. Zero project, just an appointment of a bloke they pay 5k a month to help assist looking for projects... CMY have their own guy out who is a guru in the space and has owned his own marijuana companies too..
- $24m market cap @ 3 cents will be the first target after the deal is announced
- $36m+ market cap @ 4.5 cents + is not out of the question pending favourable deal terms and the fact that a deal with BCC has been struck - this is a serious, serious company.
There is a lot of money to be made from this current level IMO. 1.5 cents is a ridiculous reflection of what this company has in the form of assets, along with the $4 million big ones sitting at the bank ready to be whacked on this BCC deal.
