The Pinguino property is smack dab in the middle of an active mining sector but that does not guarantee it can become a viable mine. The nearest road leading to Pico Truncado and a port for export appears to be about 50 km away, based on eyeballing the company's map.
The IFC's equity investment in October 2010 is a huge vote of confidence in the company but the warrants attached to their equity, if ever exercised, will dilute existing shareholders by about 14%. The consolation for investors is that the share price will have to rise by 245% in five years before that C$1.14 exercise price is triggered. Getting the price to the level requires management's commitment to make Pinguino a viable producer. I do not know at this time whether Pinguino has the logistics trifecta - water, power, roads - to make this possible.
Argentex's burn rate of approximately $602K/month means its cash of $1.9M (as of April 30) would have lasted until the end of August 2011. The problem is that they still had liabilities of $1.87M; netting that against the short term investments of $3.2M would have left them them with a reserve of $1.4M. At their present burn rate they were perilously close to running out of cash at the end of last summer. They're obviously still operating as of the present date thanks to a recent bought deal that netted them C$10M in cash at a valuation far higher than what the IFC obtained. That is a very encouraging sign for a junior resource company; if the company was having operating problems or sitting on poor properties, subsequent investors would demand lower prices for investments.
Argentex lives to fight another day. If they use that C$10M wisely, it will last 16 months and they will have the opportunity to show later investors that they can commit capex to logistics infrastructure at Pinguino.
Full disclosure: No position in AGXMF at this time.