I respectfully disagree Mark. There is a very good reason to short if you are a warrant holder, and I believe that is what is happening. The great thing about an option or warrant is that you are not compelled to do anything until the expiry, hence the name "option". Thus if I was a warrant holder and I decided that I made a decent profit on my PRB warrants, I would rather sell short the stock, thus locking in my profit, but still maintain the "optionalitiy" of my warrants. In other words if for example the stock price fell to below my strike price at expiration, I would not exercise my warrants but instead let them lapse, and then reverse my short position. In doing so, I now have "extra" profits, the profits I locked in when I shorted and the new profits on my short (i.e. the dif between the exercise price and the lower prevailing price). The only cost is the borrowing cost on my short.

I also don't think junior golds unless they are really hyped without much substance are compelling shorts for short traders, as the potential upside volatility could be quite dangerous.