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The Company's Eagle Gold Project in Yukon Canada hosts a National Instrument 43-101 compliant Reserve of 2.3 million ounces of gold.
Message: My Analysis of "Bought Deal"
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More stock dilution! No one likes to see it, but it is a fact of life with all junior gold exploration companies. If the funds from this offering generate excellent drilling results and speed up the timeframe for our company to get into production, then the money will be well spent. There is another positive side to this "bought deal" - VIT has been very successful in raising cash to advance their projects - a year ago many investors thought as much as 90% of the juniors would go bust - do to a lack of funding. I would rather own a company that has to incur stockholder dilution in order to advance their projects, than own a company that lacks the ability to raise capital to advance their projects. One thing for sure, is the fact that VIT is on a faster track in their exploration activities than we have seen historically. Right now VIT is involved in multiple property exploration activities - Santa Fe, Summit, Eagle, and next year we could see drilling occur at Big Springs and Mill Canyon. There will be no shortage of news to keep investors interested in our stock. Finally, it is noteworthy that management has been doing insider buying right in front of this "bought deal".
It will be interesting to see how VIT's stock reacts to this "bought deal". The last bought deal occurred at C$.45 and the stock soon fell back to C$.30. The big difference this time around is that we have some news items pending over the next two months that could add significant value to our company; new resource estimates for our Cove and Eagle property and drilling results from our Santa Fe and Eagle properties. Another factor that differentiates this "bought deal" from the last one, is the fact that gold bullion has broken out into a new all-time high. Personally, I would regard any pull back near C$.60 or lower as a gift and an opportunity to scale into additional shares. If weakness in this stock doesn't materialize, it would demonstrate to me that investors are viewing this "bought deal" as a positive step it making it possible for our company to accelerate its drilling activity and move it closer to production.
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