July 11, 2012
Dear TTM Shareholders and TTM Website Followers:
It has been a while since we have updated you on our work programs and the status of some of our outstanding items. We have cut back our programs as a result of very tight money supply, but we are continuing to work in different aspects of our programs in order to move the project along. I will try to update you on every aspect of what we are doing.
1) Our last financings were all flow-through. While we may have an issue with CRA about the expenditures and whether or not they are considered “exploration” or “development” expenditures (which is something we are currently discussing with CRA), we have not issued any new stock. We sit at about 70 million shares out and, with the exception of Directors stock options, we have very few warrants left outstanding. So, we are pretty clean. We are surviving because we have rented out our camp to New Gold Inc. This nets us about $160,000 a month, and with an internal burn rate of about $40,000, we end up having a small amount left over which can be used to fund our minor programs. The rental to New Gold is a very fortunate circumstance for TTM. We have a secure lease agreement in place with them until at least the end of this year, and we anticipate it will go into 2013. We have also made arrangements that if we should need some space for our own programs, it is available. We do not have to stop our programs as a result of the lease.
2) I had contemplated the possibility of doing a rights issue in order to continue our geo-technical drill program. However, after discussions with Max Pinsky (TTM’s lawyer) and the Board of Directors, I think we will do it another way. Rights issues are very expensive and require a full prospectus, which of course makes it a lengthy and costly process. My intention was to give our shareholders an ability to participate in an inexpensive financing, if they wanted to, and to recognize the shareholder loyalty that does exist. I know that a number of the Directors have expressed an interest in subscribing for some of this, and, based on market expectations as they exist today, we would likely issue up to 10 million shares for gross proceeds of approximately $1 million. This would allow us to continue our programs on the geo-tech side and to continue to monitor existing baseline studies. Our view is that this would also allow us to be better prepared once the uncertainty is over. We will continue to work in areas that we think are important as we wait for a significant rebound in the commodity price.
3) It is interesting to look at the share price of other moly miners. Thompson Creek is at $3.25 this morning. That’s down from $17 a share this past year! Mercator Minerals is also trading down at $0.55 a share, which is down from about $4! All of the other juniors, like us, are also in the pennies. It is devastating and very difficult to understand and difficult to just sit back and wait patiently. We will wait, however, as we believe in our resource.
4) We had a good deal of interest from a few groups overseas. We are still in contact with them, although they are less keen to proceed right away since the current molybdenum price does not allow for a realistic business model. They are, however, being patient and continuing to keep in touch.
5) We have given Wes and Warren the go ahead to proceed with our Bulk sample. They have also been given a limited budget to do some work at Deeker Creek this summer. We will keep everyone informed of the results of the bulk test and the Deeker program.
6) At our last Directors meeting, which was an informal lunch with the purpose of providing a general update and talking about what to do with the Company if the price of molybdenum continues to stay low, we had a 2 hour discussion, led by Terry Lyons, on the state of the markets and where we saw them going. Yesterday, I had the President of another moly junior pay me a visit as he had been in Toronto talking with some Funds, and they shared the same opinion. They, and we, believe that the commodity market may be poised for a significant rise this Fall. Both Mr. Lyons and the Funds advise us to be patient and to be prepared for an interesting Fall. We will wait until then to decide on a financing. Fortunately - because of our camp rental - we can afford to wait.
7) Our work with First Nations is ongoing. We are making progress and we continue to move forward. It is very important to have the First Nations as our partners, and to stop the dialogue would be to take a step backwards. The First Nations agree.
Despite these trying times, we continue on our journey. The Directors are in agreement regarding our path and we continue, slowly, to move down it. We will keep the updates coming.
Thank you for your patience and faith. We will continue to keep you informed as we see the need. Enjoy the Summer! Fall is just around the corner and I can’t wait to see what it brings!! Thanks for your time and please feel free to call either myself or Tom at any time. I am still in the office by 6:15 every morning!!
W.K. Crichy Clarke
President and CEO