Balance is not $85k, it is that plus the unamortised discount. I wrote about this earlier explaining that it is the face amount that is converted, not the face amount less the discount which is amortised over the life of the convertible note.
The NI43-101 unless it includes a reserve study forecasting the NPV and IRR, or establishes reserves, will ahrdly establish a reasonable asset value. I am unsure why there is some thought that there may be reserves on the company's properties but who knows maybe there are some legacy reserves, we just do't know. The forecast for sept/oct production doesn't really include much information to determine the probability of that hapening.
I admit I find it quite interesting the lack of transparency in this company, yet the incredible potential if they can go into production in September without any cash coming in the last three months.
However I agree with you, even at 150 million shares if company is producing it will provide a great speculative return. Of course when someone can explain how a retail investor can short this stock one could make money both ways.
