I think what you state would have made good sense when the stock price was at a fraction of what it is now. Then paying for the drilling would have meant substantial dilution. My point is that when the market cap is above 100 million dollars spending less than one million would have meant next to no dilution. Thus the point is that what is sensible when the market cap is low may be the opposite when the market cap is very much higher. It is also a fact that the initial drilling costs very little money. If the outcome were to be negative very little money would be lost. But if it was very positive the negotiating position of KATX would have been strongly improved. It could have stared talking both to Vale and others and entered into a JV with the highets bidder.
over the three-year option period let's not forget VALE has up to three years to do something. I would not expect them to immediately turn on the COPPER switch in our neck of the woods till the scrub their own property first.
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