Pilgrim,

Quite relevant information, just a few questions.

1. Renouncing the expenses: Does this mean the $26M from the PP will have to be spent by 31 Dec 2014? This is a lot of drilling for the next 5 months.

2. Potential Expenditures: It would be imppossible to spend that much on drilling during the next 5 months. Perhaps, some of the $26M could be used to "swapped" for the money "previously" committed for drilling, e.g. the Summer and Winter 2014 drilling. Assuming a burn rate in the order of $1.5M/mo the cost of drilling during a 5 months would be only $7.5M, or ~$8M. That would still leave $18M for other exploration activities. The only large chunk of expenditure could be to purchase the claims from the lumber people (for exploration of course). If this is not allowed, then what else could Dave spend the $18M on?

3. Swapping: Your post says: "...though it could be used to cover expenses and free up existing cash previously designated for drilling expenses."

Could this be interpreted as all the expenses (= designated and spent) for all drilling from the beginning which would be more than $26M, hence the entire $26M could be swapped with $26 M cash in treasury (still has ~$30M).

4. Strict Condition: Unless Dave is confident that he could spend all the $26M in this FY, why would he imposed on PRB such a strict condition while the rules allow 24 months (no penalty) to spent the flow through money?

The above is just my speculation to understand the situation. Would it be possible for you to provide some links which can shed some light on the statement "it can't be used to purchase any capital equipment or land". Strictly speaking, Dave would not purchase any land, he could only use the PP money to pay the claim owners to acquire the claim titles (for the mineral rights underneath). The land belongs to the Crown.

Any other experts out there?

goldhunter