I am betting big time on the outcome of this play. I see it as a gamble however, particularly because there is a another possible explanation for EE's investment at recent levels (other than the broad-based speculation that if he is participating in a pp at a given price level, he must know that he is going to recover more for those specifc shares - as one example, if he is participating in a private placement of $1.15 per share, he must know he is going to recover at least $1.15 per share overall).

I don't know how many shares EE owns or what he paid for them but I do know that the vast majority of his shares were purchased at levels significantly below current market value. For the sake of argument, assume that his average price per share is $.25. Also assume that Elmer/Mike came to him last year and said (a) if we don't get some significant source of financing, this deal is dead and you won't recover your initial investment of $.25 per share, but (b) if you will finance our completion of the BFS we are confident that we will complete a positive (although not spectacular) BFS and that you will ultimately recover at least $.75 per share, even if you have to pony up $1.15 per share or whatever, in the meantime. The point I am making is that $1.15 per share could be a smart investment for EE, albeit supporting a lower but profitable average price per share. I would sleep better if somebody could explain to me why this scenario is not possible.