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Starfield Resources Inc. is an exploration and development stage company exploring for copper, nickel and platinum group elements (PGE) in North America.
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Message: Has Starfield Lost its Focus?

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Has Starfield Lost its Focus?

posted on Jun 24, 09 09:27AM

So many juniors have failed to make anything of the leftovers in the Stillwater region of Montana. The extreme enviroment of this region and the high cost of mining have been a detriment to mining in the region.

Starfield already has a challenging project in a remote and hostile environment. Does it need to divert its focus to a questionable project when it is supposed to be developing the hydrometallurgical process for Ferguson Lake?

Chasing greenstone gold and diamonds is bad enough, but taking on a new project of this nature seems unwise, unless the Ferguson Lake project is not feasible anymore and is to be put on the backburner.

Shareholders should also be aware of the dilution which will be visited upon Starfield shareholders and the ever growing prospect that a rollback of shares will be requried. The news release states:

"Upon the closing of the transaction as currently proposed, and assuming the completion of the contingent transaction above, Starfield will have 476,907,006 issued and outstanding common shares, of which approximately 70 per cent will be held by Starfield's current shareholders and approximately 30 per cent will be held by Nevoro shareholders."

Then Starfield would have to raise money for two projects, unless one is shelved. It is unlikely that one would acquire a new project at such a dilutive cost then shelve plans for that project. It is more likely that the advancement of Ferguson Lake would suffer.

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