Here’s the bottom line:

GM felt it was imperative to raise cash quickly because they expected to have their cash position drawn down to $35-40MM at the end of 2011. Additional outlays at Valardena for mine development/equip., and additional drilling El Quevar, Mexico, and Peru are draining cash rapidly.

They wanted to wait and raise it with a better stock price, but obviously that didn’t happen and so they were forced to move now. As he put it, they guessed wrong on the direction of the stock short term, as we all did. Ironically, the stock is now $1/sh less than they received, so in hindsight it was a good thing they did.

One thing they told us repeatedly in Colo., was that cash was critical and they must never be in a position where it got too low for the major commitments they are making.

He thinks that with the additional $30MM, they are comfortable with the position through the end of next year.

They will probably commit to the 2000 tpd mill around the middle of next year but will have time going forward to raise the necessary amount to cover a $150-200MM plant.

He does not believe that Sentient had anything to do with the pressure on the stock. They have a good relationship with GM and they would risk a lot to their reputation had they directly or indirectly applied pressure.

Danni said that they had requested that Sentient support the stock in the open market but that they were non-committal and it wasn’t their modus operandi. Nonetheless, it would seem prudent if they did to protect their own position. BTW, the last stock Sentient bot was on 10/22/2010 at $18.50/sh in a private placement.

I sense we will get some drill results soon from Valardena, Argentina, and before long, Peru.

He is obviously frustrated but believes once this stock begins to turn, it will move rather quickly as they disseminate positive news.

Silverbull50