Brien Lundin, Editor of the Gold Newsletter joins us to share his thoughts on the balance of raising capital versus drilling strategies for junior exploration companies in different types of macroeconomic environments.
We start off by discussing just how aggressive a drill play should be in raising capital in tougher markets like we have at present; and when it is better to wait for a turn in the market, and when is best to still forge ahead. Then we get Brien’s thoughts on whether he is more animated by companies that raise funds to try and make a new discovery, versus companies that raise capital to do resource expansion towards the goal of a resource estimate or economic study. We also discuss the overall health of the financing window at present for the junior mining companies.
We wrap up by outlining the why Great Bear Resources (TSX.V: GBR) (OTC: GTBAF) was such a template for a success story in junior mining from the initial discovery, to aggressive exploration expansion, to raising money at successively higher prices, to the takeover win for shareholders that freed up funds to then rotate into the next speculative exploration stories.