Nexus,
Regarding metallurgy, I agree that this release is crucial. From the information Barb Henderson has provided previously, I think we are alright here but the next release should provide solid proof, at depth (35 meters) Message 12614273
Funny you should ask about financing, I was thinking that myself. Here are my thoughts ...
While PFG management continue to say they have enough money for the initial drill program it is clear just from the size of the property that a second drill program will be required, I don't think it would be fair to the PFG shareholders if they didn't. CMS from her speech mentions the first drill program is expected to cost "we had scheduled a budget of approximately US$2million/ CDN$3million. It's close but we can do it.". Therefore, I would have to think a financing of $5-$7 million (1 million shares) should be enough to complete a second drill program, including diamond drilling, metallurgy etc. If they require further funding, they can always get more later.
If I were to again reference CMS' speech at pacrim-mining.com
I read the following: "I think that having that and an institutional base is quite important for quickly and expediently raising more capital for the development of a discovery." This leads me to believe the financing may come from one or more institutions, perhaps from the same three companies that financed PFG in the spring of 1997 (First Marathon Securities Limited., Nesbitt Burns Inc., and Loewen Ondaatje McCutcheon Limited) www2.cdn-news.com
I would suggest any financing is dependant on both the metallurgical findings as mentioned above and of course further proof of the potential size of this prospect. That is why I believe the financing will occur some time after the next release, although it could happen a short while before as I suspect they will be made privy to any results before we are.
Where I will begin to get concerned, is if a large financing (>$10 million plus perhaps) is announced. In my mind, this may indicate Luicho's potential is less than first thought and PFG must cash up to continue to prove up this project (as charred has intimated) or to get ready for the next project. The wording of the release may provide a clue and we should all look closely.
Note that my thoughts are based upon my opinion that two drill programs should be enough to give a clear indication as to the size of this discovery and should more than likely solicit bids from majors.
Qd |
