Re: More exposure
in response to
by
posted on
Apr 11, 2012 02:57PM
CUU own 25% Schaft Creek: proven/probable min. reserves/940.8m tonnes = 0.27% copper, 0.19 g/t gold, 0.018% moly and 1.72 g/t silver containing: 5.6b lbs copper, 5.8m ounces gold, 363.5m lbs moly and 51.7m ounces silver; (Recoverable CuEq 0.46%)
The reason to spread the word now is twofold, and happens becuase people are done accumulating.
1. The more people that are aware, the harder it is for TECK to keep things under wraps. According to Vette's theory, TECK will want to buy us out before the BFS, as to avoid a bidding war. The more people that know about this story, the more difficult it becomes to do this. So why now and not earlier? Because Vette is probably done accumulating. By creating more exposure now, and assuming he believes his own theory - this helps the company as the company doesn't have to waste its money on PR, and advertising and wasting shareholder capital.
2. If this does drag out a bit longer than anticipated, a higher SP means less dilution when/if we have a PP, which means more profit come buyout since you no longer benefit from a lower SP (since you're no longer accumulating). Momentum is also something that a lot of investors want to see before they pile on. By creating a higher SP, it makes it easier (although perhaps it's not necessary) to sell the project if TECK is buying so they can justify it to their shareholders. This is more psychological.
This is just my interpretation on motivation, and it's up to everyone to figure out and come up with their own beliefs about what's going on and why it's going on.