I will be increasing my stake in Inflection Resources and I don’t think the book is closed yet FWIW.

Inflection Resources Ltd. (CSE:AUCU) (OTC:AUCUF) (FSE:5VJ) (the “Company” or “Inflection”) is pleased to announce that it proposes to undertake a non-brokered private placement (the “Offering”) to raise gross proceeds of up to $1,500,000 through the sale of up to 6,000,000 units (each, a “Unit”) of the Company at a price of $0.25 per Unit.  Each Unit consists of one common share and one-half of a share purchase warrant, with each whole warrant exercisable into one further common share at a price of $0.40 for a term of 18 months.  All securities issued will be subject to a statutory hold period of four months and one day.

The half warrant with a life of 18 months is very attractive to me. Especially in light of these comments in the last news release:

“The Inflection team is excited to get this next chapter of the copper – gold exploration program in New South Wales underway, which is expected to comprise of approximately 35,000 metres of drilling and now fully funded by AngloGold.  We estimate this phase of drilling will take approximately eighteen months to complete and will test twenty-four principal target areas of interest with each target area requiring multiple drill holes.

With warrants you obviously want the potential for a quantum leap in the share price before they expire and 35,000 m of drilling across twenty four target areas is expected to take… Well, very fittingly 18 months. If they make a discovery at any of the 24 target areas I believe the share price will indeed to a quantum leap and half warrants would be a nice bonus.

NOT INVESTING ADVICE. This is simply the rationale why I am increasing my stake. I am biased!


Leave a Reply

Your email address will not be published. Required fields are marked *

Name *
Email *