The money will go much quicker. Here's what might happen.
In the short term, I estimate it will cost over 2 million CDN to drill the property. Then add in the $400,000 US for the option payment and then management's salary, then all the conferences, they have to raise more money.
With that being said, CMS will probably promote the stock to $4CDN then raise 10,000,000, to complete the feasibility study.
Three things then will happen.
One,
CMS issues 8 to 10 million shares to raise money to buyout the owner. Now the company has approximately 40 million shares. Then sells the company for 120 million making the shareholder $4.5 CDN a share.
Two,
The company sells the company before buying out the owner.
The cost $30 US per ounce X 4 million = $120US = $180CDN - 40 million = $4.66 CDN a share. Same as one.
Three
The company puts it into production themselves which I don't believe they would do.
All this is based on 4 million recoverable ounces of gold. I am also using $30US per ounce. Why because of the big royalty, 3% NSR is valued at $9US
The 12,000 meter drill program is very risky but for management to commit to this, it must be an excellent project. Their website is one of the best, it really helps the investor see the property potential.
Just playing around here. Anybody has a different idea what might happen.
I guess I still owe Elizabeth a story here.
|
