And what will that money do for the value of the company? In my estimation I would say a lot.
Mexus has already restarted production, and received no recognition (no PR's of gold) - yet. Now the new money hopefully comes and, as Belgie has said, this new money will kick start the UG and the drilling necessary to support the long term goals of Mexus (heap leaching and six figure production).
With how cheap everything is now (Prices off as much as 90%) in this current market if Mexus has $4 million cash I bet PT will be able to get the equivalent of what would have cost around $40 or $50 million dollars just 3 years ago. Mexus shareholders can be guaranteed if/when that money is received it will be put to good use and generate some value for shareholders since it seems that it will be deployed at the bottom of a bear market, where cash is scarcest and deals are the best.
The drilling and lab rates are cheap now and the times are fast because exploration is always the first thing cut in a bear market. Other miners/suppliers are still doing poorly, a boon for Mexus to acquire equipment and inexpensive claims etc. Factor in that oil is in the tank, and they operate in already cheap Mexico... add in a lot Thompson ingenuity and frugality... yikes.
If Mexus is worth $6.5 million now, what are they worth plus $4 million and the production it will likely generate? Even on the low end of factoring in just the HG UG production the answer is - a lot more! Alternatively you could say it is factored in, therefore all of Mexus is only worth $2.5-3 million - crazy - again easy to see and strongly bet that the stock is undervalued.
Based on our share price, our limited marketplace is its usual skeptical self. The junior sector is in shambles but there are examples where stocks are in fact performing and being rewarded for that performance. There are still lots of examples on the other side too, projects advancing and getting no credit but this is where patience and good speculating comes in. Either way you want to be in the best speculations with the greatest rewards for the lowest risk. Mexus is 60 cents off its all time high - I'd say that is a fair margin of safety! Since you only want to buy the best stocks for the best prices I think we are pretty much there with Mexus at this point in time.
Like I said before, we will probably get the money and be disappointed that we let the SF go for so cheaply when we see how much it is worth in 2-5 years.
Anyway, have a good one!
And please, children of Mexus, respect your elders and play nice in the sandbox.
And take care, because it's dangerous out there!
