Folks were asking what they would do to raise money. Now we know. They issued 750k worth of options. Cheap by many standards. They have trimmed management including accepting a resignation from their money man and cut non-essential work. They are trading off road side geology on other properties for drilling. We noticed that only one person resigned. That means the others are staying on despite wages not being paid in full in cash. This is real commitment. $11.5 k is not a huge amount but this is a small company and the money will go far.
Why focus on tungsten? They can build a mine for about $35 million. Tungsten goes direct to market so there's straight profit. All it will take to get the money to build is some infill drilling and a willingness to part with some equity. This is not like gold where miners are losing money at today's prices or just treading water. Tungsten allows HPY to hold a greater share in an equity deal. The other factor is the very small amount of money needed. In mining this is a dime operation.
I've bought what I can for now. Thank you to those who sold. I plan to hold this for a few years if need be. It's so cheap there's zero need to sell it. I will be accumulating more. Nothing major but I suspect the reward by 2015 will be well worth it.
June 27, 2013 - Vancouver, British Columbia - Happy Creek Minerals Ltd. (TSXV: HPY) (the "Company") is providing an update on its plans for 2013.
The Company is making final preparations to mobilize for a drill program on the 100% owned Fox tungsten property. Drilling is expected to commence around July 15th. To date, drilling has returned top-tier tungsten grade and thickness that are at or in a near-surface setting. Results include 19.4 metres of 0.82% W03, 11.0 metres of 0.80%W03, 20.0 metres of 0.63%W03, 24.7 metres of 0.68% W03, 14.8 metres of 4.0% W03, and 24.0 metres of 0.79%W03 (Refer to Press Release dated November 19, 2012). Drilling is planned to continue testing the extent and grade of the mineralized zone with a view to outlining an initial resource. The Fox is thought to be a unique and attractive new discovery in the global tungsten sector. Tungsten is regarded as a strategic and critical metal for industrial countries and prices have recently climbed to over $35/kg W03. A grade of 0.7% W03 contains 7.0kg W03 per tonne of rock.
To assist in expediting the drilling program, certain short term measures have been negotiated with management, employees, consultants and other service providers. Starting July 1st overhead costs of approximately $11,500 per month are being deferred to help allow the Company to advance the Fox property with drilling.
In connection with these adjustments, and subject to TSX Exchange acceptance, the Company has granted 750,000 Options of the Company to management, employees, and consultants to the Company and exercisable into common shares of the Company at a price of $0.20 for a period of two years and shall vest in accordance with the policies of the Exchange and the company's stock option plan