What might happen If Tyhee did a PP at 32 cents to raise $25,000,000?

Well, I don’t know. But, two years Romarco Minerals, a company very analogous to Tyhee, did just that; it raised about $25M when its share price was about 32 cents.

Two years later (last week), and following very aggressive drilling with 6 rigs, Romarco announced its second Feasibility Study.

You be the judge, and tell me if Tyhee should follow in Romarco’s foot steps this year?

Here are some of the highlights from Romarco’s Feasibility Study. And was all that money and effort and “DILUTION” (ONE HALF BILLION plus shares fully diluted) worth it?

(Oh, did I mention that Romarco’s share price went from the 30 cent range to nearly $2.89 in less than two years?)

Was it worth it?

Take a look:

Capital costs of $275 million

Average cash cost (after by-product credit) of $347 per ounce first five years

Reserve grade of 2.06 grams/tonne

Proven and probable reserves of 2.0 million contained ounces of gold

Robust project economics

At $950 gold, pre-tax net present value (NPV) at 5% discount of $279 million and internal rate of return (IRR) of 19.6%

At $1,300 gold, pre-tax NPV (5%) is $693 million; 37.6% IRR - see table below for sensitivities at various gold prices

Mine life in excess of 13 years at a mill throughput of 7,000 tons per day (tpd)

First year production of 172,000 ounces of gold

First 5 years production average 150,000 ounces gold per year

Average 83.7% gold recovery

http://www.romarco.com/Newsroom/News-Releases/News-Releases-Details/2011/ROMARCO-ANNOUNCES-POSITIVE-FEASIBILITY-STUDY-FOR-HAILE-GOLD-MINE-PROJECT1124092/default.aspx