Pash,

So, $3.10/s is not a bad price for PRB, in view of the current SP. However, as you said, the buyers will get some tax benefits under the flow through scheme, hence their net cost is below $3.10. Presumably, we could call that a win-win situation for both PRB and investors?

One condition PRB has to comply with is that the money must be spent on activities specified under the flow through scheme.

However, the second paragraph of the NR says: "The Company will renounce such CEE (Canadian Exploration Expenses) with an effective date of no later than December 31, 2014." What does that mean. Anyone?

During the meantime, let me be bold enough to speculate the following: The $26M raised through the flow through will be used within the terms of the CEE...and PRB commitments include a deadline, i.e. by 31 Dec 2014 as stated, it will spend all the $26M, which would pay for a lot of drilling for the next 5 months, the speculation is that a chunk (not sure how much, half?) of the $26M would be for buying off the lumber people (including the 50-50 JV, the wedge, etc...,e.g. cottage properties, or some kind of payments to keep peace with the cottagers? All these could be considered as CEE activities?

Note: PRB still has close to 30M in its treasury. But extra money won't hurt if you can raise it in this climate.

Raking in some $26M @ $3.10/s (compared to the current SP), for ~10% dilution (no wts) is not bad a deal for PRB, imo.

Comments?

goldhunter