The proceeds will be used for exploration work on Metanor's Quebec properties.

A wide range of views seem to suggest that the directors have relegated production as secondary to more DD exploration at BL.

However, could it be that ……

  • Existing resources will fund the ramp up of production at BL aided by the benefit of the month by month increasing gold ounce revenue.
  • The Press Release does not say proceeds are required for more drilling at BL, but “Quebec properties” – which could well be Barry.

Until surplus funds are generated at BL, then that commercial entity should be ring fenced and its funds should not diverted from it to other projects. 

The question is therefore, why funds for drilling are being raised at about 20% above the present low SP?

It is possible that the company needs crucial additional information from the newly acquired land at Barry, in order to facilitate a JV to kick start the Barry project, particularly now that Eagle Hill to the north has merged with Maudore and is likely to wish to develop their site.

With, say $2.4m and DD less than 300 ft, which may cost in the region of $80 ft, then this would enable 30k feet to be drilled for this open pit area. 

It needs to be taken into account that Metanor has already invested heavily at Barry and has more resources [low grade] that BL and this project should be prepared for delivering value to the company.