CUA.V, CuOro Resources (special request)

CUA.V apr 2012cuoro options

CuOro Resources mines, that is, is looking for, copper, CU on the periodic table of the elements and or Oro in Spanish, hence the name CuOro I assume. It is relatively new even if management is not. It trades on Vancouver where it has traded on and off for the last few years. It also trades in Germany. We have no idea how good these people are or how promising this Columbian parcel of land will prove to be.

What is relatively clear is that the incentive for management will soon be sharply reduced should the stock drop below $1 or so. There are 9.5 mln options and warrants held by various parties, most being management, that all but 1.2 mln have strike prices of $1 or higher and  mature, for the most part, in about a year. This is the “dig or die” phase the only question remaining is whether or not you want that “other-people’s-money” to include some of yours. Presently the company has about $18 mln. in cash which it is burning at a rate of about $10 mln. per year. HudBay is a partner to the tune of about 14% but is also the beneficiary of a non-dilution agreement.

At today’s of $1 the stock is down 62% from the recent high of $2.60.