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TrekMadone is that warrants will be equal to £1.7m + 1383909.75 , just over a total of £3 million in the bank to ECR?
Save a fundraise no?
Let's hope we get the drilling results that unambiguously support the talk of mines. Remain hopeful here....
Yes that’s my point £1.7m (3.75p) + some scrag ends +£1.3m Shen.
That would significantly push back a fund raise. I have posted warrant details and all RNS dates before.
Craig is well aware that that is the lowest path of finance resistance. He will be aiming to get the SP through the triggers.
Trek
He's going to need drilling results (or maybe licence news) to trigger a rise to those levels? On current sentiment, the more 'off the pitch' developments might not be good enough to take us much beyond a brief flirtation with 2p.
Although in saying that, I do think sentiment will be different once we get that second rig on the ground. That is the kind of scenario which you could imagine might trigger a sustained rise? Anyway, let's see where the next RNS takes us.
If £3 million potentially is coming in from warrants, why another raise?
LW, we've had a second rig on the ground for quite some time. We are 1.6p bid
JSmith23 there’s always a raise it’s one of the primary reasons these companies list, access to capital. The question is when, what for and is it accretive.
Legal, I think the infill RC drilling will be the game shift. Question is how long to get the rig delivered and commissioned. These diamond drills are targeting the seams. RC will be v quick once it gets going.
If we then bombard the market with decent assays the sp will follow. Rule of thumb is average 2gpt over 100m and we’re good to go especially as shallow.
Usual caveats
Trek
It makes little sense for a company such as ECR to spend so much of its capital on buying land such as this. If they know the results and have not released them to the market, then that's bad. If they don't know the results and are buying on speculation, then that's bad.
They have pXRF results. They’re not 100% but they would have benchmarked the results agains the previous assays and calibrated from there.
Paul, take your point but the 2nd one is a contract drill. Well soon have two of our own, flat out.
Then hoping we will soon either JV and/or build a mine!
Trek
PaulFG - I meant our own and newly purchased multi purpose second rig. Currently we are only diamond drilling (I think?) with our own first rig and a contracted one.
Trek - re the infill drilling, that's what I'm also hoping for. Once the multipurpose rig arrives, we will start to do the type of drilling and get the kind of results that will hopefully generate results that will move the share price. In terms of getting our own second rig operational, I would imagine we will take receipt of it in October/November (which allows 3-4 months for delivery) and would hope we might have it operational for early in 2022 (Feb 2022?).
It feels like we are overspending and that's a worry. The activities over the last 6 months with new hires, new areas, new equipment, and now property, it is leaving us with a dwindling cash pile. I could forgive the outright lies during the underhanded placement as it meant that we had enough cash to drill pretty much constantly throughout this year and nearly all of next year too, giving us a good chance of seeing some results. This I think is not the case now. On CB himself, he is setting himself up for failure at nearly every opportunity, he's constantly over promising and under delivering. Feels like he is trying to run before he can walk. If that land was so important/valuable for Kirkland, do you not think they would have bought it? Or are we just believing they were too busy pulling gold out of the ground to realise it was up for sale and happy to pay us a 10x multiple on it?
To balance my average is not too far away and I expect to have positive returns from ECR over the next 6 months so I am holding but let's not all drink the cool-aid.
I can understand your concern there Snip but once the spending is done (sometimes you have to strike whilst the iron is hot) and the new drill arrives (should be soon) then they can start to rein in costs.
He said that shortly they will be pulling the contractor off CresWick and will decide what to do next , I think they will drill on the acquired properties , at least that was the impression I got in the last interview whilst planning the next stages.
Although they can check the cores in a limited way they do need full information on what they have done so far and are probably as frustrated by the results delays as PI's.
The mines are important because it seems the deeper they go in Victoria the bigger the gold finds /shoots and that does make sense, don't know how much they have to go at now but the leases at one point were over 1000 km2 and in a highly prospective gold field area like Victoria then that is massive.
There must be clues in their recent tweets somewhere, must remember to have a look over the weekend to see if there is anything obvious.
What's the cost analysis between our own rig and crew against contractors? I'd be interested in CB letting us know that, as well as what warrants have been exercised. I'd also be keen for an update on license applications, where things stand, and expected timelines. We have amassed a big team to surround our own 1 drill, what is everyone doing on a day-to-day basis? What has been logged when, and awaiting back, would be nice to know this too? Why are we creating so many subsidiary companies? What is going on with our tax breaks/allowances and when will this be realised?
I feel these are all things CB/ECR could easily let us know, these things don't need to be in the dark. I don't follow on a day to day basis so if I've missed some of this info coming out apologies.
'I'd also be keen for an update on license application' - Yep this is the biggy for me atm. Due to the nature of the horizontal drilling we're clearly not getting the kind of 'in your face' black and white type of results the fickle market wants to re-rate the sp (I say fickly because if anybody actually takes the time to digest the webcasts it's clearly explained as to why the intersections are narrow on the horizontals). Licenses therefore will be the driver IMO (unless we get some whopping horizontals!). So yes, I want to know the status of these as they have BIG implications for warrant sales + JV negotiations etc
Even a tweet with our up to date license status/s would give us some idea.
I just hope that when the multipurpose rig arrives, they send both rigs to the project area that they have the most geological confidence in. Very recently, CB said that this was Blue Moon. Its time to start focussing on our best projects and demonstrating the value in the ground.