Bonjour amigo,
Corner Bay Minerals has filed a preliminary prospectus with certain Canadian provincial securities commissions for an offering of units comprising common shares and share purchase warrants.
Existing shareholders willing to finance the company will usually sell a portion of their holdings to take down the PP, which presumably will contain flow-thru shares so these folks won't have to declare a capital gain. We also have tax-loss selling which may or may not apply to Bay in a negative way. Downward pressure of share price should peak in the next few weeks while the PP is being completed.
Majors, middles, minors and generals that have cashflow to acquire (few of those left) go after the elephant size, hyper low cost deposits that have the ability to double and preferably quadruple in resource size after purchase (being in a big unexplored district with lots of potential helps too),...I don't think Alamo Dorado will be on their radar screens yet with resource of 2.5 million equiv oz Au - 70% recoveries and little talk of copious numbers of new targets to drill to expand the resource. Kind of forces them to go the PP route because the alternatives to development funds such as partnering with a resource financial company generally means you give a chunk of your profits from production to them for piddling amounts of cash up front.
I think management makes the only smart decision possible by continuing to drill and compile the feasibility study. I feel they know enough about the deposit now to make a production decision, so good drilling anticipations should drive the stock price up to reasonable levels for production financing. Some good prospecting, geochem, geophys data would go a long way to boosting expectations.
The annual North American, fall and winter mining dog and pony show is about to begin, so the program below should have maximum effect,...:-)))
While the feasibility is being completed, the company plans to continue drilling at the property where the mineralized zone remains open:
i) to the northwest along strike;
ii) down dip to the west;
iii) at the southern margin where high-
grade values were earlier reported.
The company will test for a feeder
zone underlying the present body of
mineralization;
Winspear is a good analogy. I would hate to see you miss another double as we drill down dip (gggggggggggggggg). Timing is everything.
Cheers, |
