Re: Prospects
in response to
by
posted on
Oct 16, 2007 05:53AM
Guess we'll disagree, there were a lot of retail investors/buyers yesterday and coming in again today. Small lots not large lots trading.
Chances are 10 million tons is just a guess and not backed up by drilling results. Even 5 million tons is just a guess at the moment, not proven.
No one other than Noront has drilled and hit similar mineralization. Sure it's likely but far from proven.
Even 5 million tons puts a value of maybe a bit more than $6 per Noront share AFTER IT'S PROVEN. So why is NOT trading at close to $6? Because everyone is pretty sure the downside risk is between $5 and $6 and upside huge. But that downside $5 will take a few months to determine.
I'm sure Probe can find a jv or investors to come up with the money to drill but it's going to cost one way or the other. Dilution or giving option on part of property. Until anything is announce one would think dilution will be chosen as that's the way juniors traditionally raise cash. Probably one of the brokerages would put together a placement of a lot of stock pretty fast.