There is some dialogue on the other McFauld’s forums regarding financing challenges facing small cap partners in light of their JV obligations.   

I have no doubt that we will be facing a very tight financing market (and perhaps bitter venture capitalists) for months and maybe years to come as a result of the US mortgage fiasco. 

So what about UC ? 

I would like to share a bit of communication with UC on 01/30 c/o Jim Voisin:

“As for financing UC, we presently have enough funds to go forward on the LaYesca front as well as the JBL drilling. If LaYesca goes over budget, or we hit in the JBL, we may possibly be looking for additional funding, but at a higher share price, and not for a huge amount of money.  I anticipate LaYesca to turn from a cost center to a profit center in very short order after commissioning is complete.  I am not at liberty to discuss the projected number, but it will suffice to say that they will be a welcome relief that should replace further placements.” 

Their last private placement was at $0.45 and that is a long way from where we are today so let’s hope we can meet expectations at La Yesca.  I have made some speculations regarding the magnitude and impact of La Yesca cash flow based on the 2007 recovery numbers posted on the UC website. (See 01/23) 

Jim remains tight lipped about the recovery rates (01/17): “After a very thorough independent evaluation we had specific recovery rate targets to achieve that would ultimately solidify the viability of this project.  Those goals have been met and exceed.  At this point in time those numbers remain internal.”   

So when can we hope for some sparks, smoke and fire ??? 

I solicit your perspective and opinions