Topic: How To Invest

Hi. My question is about CanAlaska Uranium. In order to continue exploration won’t they soon need to raise more capital via ownership dilution with their partners or a share issue? Thanks.

Article Excerpt

CanAlaska Uranium, $0.17, symbol CVV on Toronto (Shares outstanding: 137.8 million; Market cap: $23.4 million) continues to report encouraging drilling results on its properties, with promising showings of mineralization. However, it will likely take considerably more successful exploration before CanAlaska and its partners define a mineable deposit. Meanwhile, CanAlaska holds cash of $8 million, and has no debt. The company is developing a number of its projects with the help of partners, so it is only using up its cash at an approximate rate of $1 million per quarter. This means it shouldn’t need to sell shares to raise funds for close to two years. CanAlaska is continuing this approach by signing new joint-venture agreements. These are a great way for the company to let others fund further exploration on properties where CanAlaska has made initial mineral discoveries. This way, CanAlaska keeps an interest in the properties and does not have to resort to dilutive share issues or new debt to fund…