On Friday the Company filed a shelf prospectus in the amount of $30,000,000 to replace a $30,000,000 prospectus which we have had in place since 2010. This document does not mean that the Company intends to undertake a financing for $30M. Instead, it provides flexibility to raise equity should the company have a need in the next three years. For more information on this type of prospectus filing, I would suggest you read the information at the link below.
As you note, we have acknowledged that we will need to undertake financings in the future to advance our business plan as it is presently constituted. This financing could take the form of equity or debt. We will provide more specific information on our future plans as it becomes available, but I think the important takeaway should be that the presence of this shelf registration does not in any way mean that we will raise $30 million via equity in the near future, if ever. Please note that we ended up using only $5 million of the previous $30 million shelf registration.
It is our belief that there is much more at work with the recent price drops than simply the potential for future financing. Most companies in the mining industry, large and small, are selling off hard the past couple of months. Since you mention GORO, I do note that it is an exception to this most recent sell off, and agree that in a normally functioning market, the issuance of our permit to commence production at Butte Highlands, as well as the commencement of production itself, should be a catalyst for Timberline’s stock price. The current “buyers strike” reminds me personally of late 2008 and early 2009, and buyers of Timberline in the spring of 2009 saw a substantial appreciation in stock price before the end of that year. Hopefully history repeats itself.
And yet they will not answer the question regarding the the response back from the MDEQ....on the appliation submission in late March earlier April. See if you can get an answer on that.....something is up.