Richie,
To get real information on the company, I recommend that you give them a call. For "unreal" information, talk to me.
Here's what I think is going on.
Basically, X-Cal thinks that it could have several deposits on their property that are similar to the original sleeper deposit. If this is correct, they are looking at several millions ounces, or possibly 10's of millions of ounces, since the original sleeper deposit held about 5 million ounces or so. This is more or less explained in the press release that I just posted.
Getting a three year option on the property is amazing. X-Cal will now try to form a joint venture on the project with a major company. The major company will pay for exploration work over the next few years, and will be responsible for making the $16M payment to AMAX. The major company will also pay for the mine construction costs, and will be the operator. As you can see, under this scenario, X-Cal will not be going to the market for any more money - they will not need it.
Other than the obvious questions (i.e., how much gold do they have, how much will it cost to mine), the only pther questions are how much will X-Cal get paid, and what stake of the joint venture they will own?
Regards,
John Sladek |
