Q: Hi Peter…Today’s headline “Strategic Investors Exercise Warrants Early”. The stock is up slightly today in a down market likely due to encouraging drill results and today’s posting the news about the investors exercising the warrants. Do you know if Eric Sprott has been exercising his warrants (assuming he is a strategic investor and has warrants)! Do these warrants trade? A couple of days ago a press release stated that for one hole the visible gold in the core was becoming “coarser”, suggesting the hole is close to penetrating the centre of the ore body. I assume “coarser” means the gold crystals are becoming larger. Do you know if that is logical or just wishful thinking? I own slightly more than 2,000 shares and am thinking about buying some more. I generally don’t purchase warrants but might reconsider.
The news suggests veins at depth so production costs will be substantial - if it ever reaches that stage.
Jim
The news suggests veins at depth so production costs will be substantial - if it ever reaches that stage.
Jim
5i Research Answer:
The warrants do not trade; Eric Sprott has not made any recent disclosures on the warrants. The 'coarser' argument makes sense but it can be dangerous to make assumptions on one hole. A 'nugget' effect can change dynamics and consistency is going to be far more important, especially if ore is at a deep level. Eight holes did hit, though, which is encouraging. The stock is acting reasonably well and with more cash investors may be more comfortable with the ongoing negative cash flow. It needs to be considerd VERY speculative, but has some attractive qualities for a junior developer.