Couldn't they wait until the revenues started flowing from Butte. What is the sudden urgency after all this time? It certainly doesn't help the stockholders over the short term.
Looks like they had $608k in cash at 6/30 and they have been spending about $700-$900k per quarter.
Even if BH starts up by year-end, I would not expect TLR to get any cash flow for at least a year. Mines normally start gradually and inefficiently (that's why miners often proudly announce production has started, the stock pops, and then the company does a secondary offering because even a successful mine takes a while to generate cash).
It's pretty pathetic that this team of management and directors needs a broker to find one million dollars. It suggests that insiders are unwilling to put up any of their own cash and the company has not developed any institutional backing.
This offering is also too small to do anything but pay salaries for six months until the next offering.
For another piece of bad news, page 9 of the company's investor presentation says: "Mined material to be trucked to nearby off-site operating mill with excess capacity
Eliminates immediate need to permit, finance and construct a mill"
When and why did they add the clause "Eliminates immediate need to permit, finance and construct a mill"? It implies that there may be a long-term need to build a mill. If Golden Sunlight shut down then TLR would be screwed.
I have a copy of a TLR presentation from September 2011. The Butte Highlands page says: "Production infrastructure complete". Maybe that was a complete lie. Or maybe TLR management believed at the time it was true because they are completely clueless about how to build and operate a mine. Same guys are still in charge.
I interprete this differently. Is it possible they could be live in Nevada prior to Butte ? They have really been pushing Nevada hard. To Beat's point - why wouldn't you wait? Is it because the JV partner wants cash to flow now to begin the process of recouping their invesment?
So, I just sent off an email to TLR about my disgust of their future dilution. Will it do any good or have any value; of course not but it made me feel better. I Hope at least it gets read. By the way the price pre market is down 2 cents, probably more later.
Do they need a pay raise? Greed; YUK
They Claim they needed the money: so borrow it or wait until production comes in. WHO CARES ABOUT THE SHAREHOLDERS. This now adds more slices to the pie and reduces the size of my slice. Not to mention that the price is now going back to .20. IMO they don't give a da*& about us, only their own greed. This did not have to happen, why, why. &*^%^&^% big time. Yes I'm pi**ed
Maybe management is just getting some alternative financing options ready since we have not had any further news about the Lookout Mt. JV. If Butte gets the final approvals soon, I expect the shareprice to be higher and any possible dilution to be smaller. Let's not forget, Butte is already financed to production and there is cash on hand, so there may not be such a rush to get it done depending on the permits approval arrival date. After the Iron Butte acquisition, who knows what else Timberline has in the works. Butte is advancing at a faster pace than ever before now, todays news reflects that. We'll have to wait and see how all of these developments unfold. If you look at how management has kept the Outstanding Shares(dilution) under control and the amount of Oz.'s(gold) in the ground(including the latest addition, Iron Butte), things don't look so bad IMO. Don't give up on Timberline, Good Luck!
Sentiment: Strong Buy