The only reasons I can think of for why doing a $500,000 private placement at $0.21 is that:

1. They want to do some winter drilling, but it would reduce the cash reserves too much. So another $500,000 would pay for what, 50 to 100 extra holes? So suppose they do spend a million on the feasability study, a million on driling, a half-million on operations and another half million on small acquisition or lease/claim fees and perhaps some new capitol required at the camp (pre-infrastructure). That would cost $3,000,000. If they plan to spend between 2 and 3 million in this way, the extra $500,000 raised makes some sense...

2. Company insiders...That can only mean one of two things. First, that the company is in desparate straits like VGC is, and needs this cash to survive even with no drilling. In my view, this is not the case. Second, that company insiders want drilling and progress to happen, and are willing to pony up, and in a sense demand to participate. In this way, they are showing real confidence in the company, and are expecting to be rewarded for it. Another 2.5 million shares has a small dilution effect, however, it's very limited.

3. The upcoming PDAC is AFTER the decision on winter drilling must have been made, and therefore these decisiosn had to be made now. Even though it sucks that they got in at 0.21, well below all of our average prices. We can still get in at less than 21, but I expect that window will close soon.

All in all this private placement today is a harbinger of good news, a decision to drill this winter and keep progressing the plan.

SKELEG