If your theory was correct, then a company like Orvana,a small gold producer, which has about 90 million dollars of cash in the company coffers, would be doing phenomenally well, but instead it too is in the dog house , share-price wise...

The market cap of Orvana is about 66 million dollars. The company has no debt, has a very competent management team, still has 100,000's of ounces of gold left on its properties to extract, but the market has obliterated this good company just as much as many other good quality juniors...Even though it will continue to amass profits of millions of dollars in the coming quarters.

There are many reasons why the juniors are being trashed, but I strongly believe that the good ones are going to make it and do very well in the future.

Don't forget, that there are literally trillions of dollars out there. Juniors do not necessarily need to use conventional ways of acquiring funds to start up production.

Watch for such entities like the rich Chinese and Arabs to ramp up investment in mining companies in Mexico and other mining friendly locations.

The chinese already acquired the junior: Tyler Resources, which has a copper deposit in Mexico. I believe they will continue to spend their US dollars to buy more juniors and mid-size mining companies...