Dear Shareholders and Interested Parties,
Just a heads up that we are closing Pilar Gold's C$5 million private placement this Friday. The response has been very positive and this is going to be our last raise before our go public listing in Q3.
I hope we will list on the TSXV at around $1.50 per share. Don't hold me to that, but if we can increase our monthly production from 4,000 to 6,000 ounces a month by then it will put us in a great place ahead of the restart of Sertão mine - potentially taking us to 10,000 ounces a month. Juliana Codrim, Marcelo Lima and the team are working hard on getting our third mine Caiamar ready to begin mining in August. We still have Cascavel and Livramento mines up our sleeve before Sertão begins trucking to Pilar. Bodó Tungsten is a force of its own and will create a lot of value for shareholders also.
This placing is at 70 cents with a full 2 year warrant at $1 and implies a valuation of only US$120 million. Pilar is highly sensitive to rising gold prices. Each $100 increase adds US$400,000 a month to EBITDA or an additional 20% to our February run rate before gold began this move.
For what it's worth I have seen 4 commodity bull markets in my career 1994-95, 1999, 2003-8, 2009-11 and think this one will be the most powerful. The last 8 years of bear markets made it so tough to raise money that most projects didn't get funding. This means we have a 2 year gap before nickel, tin, tungsten, gold, silver, copper etc mines come onstream. The big miners are run by accountants and lawyers who prefer dividends to growth while the small developers have been left flat footed on projects that will now cost twice as much to commission. Pilar Gold is well placed with 4 excellent working mills and numerous other mines ready for restarting with little capex and short lead times.
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