How will capital raising effect share pric, page-8

There are not 3 billion shares on offer. You mean on issue.

People get so caught up in the number of shares on issue, but it doesn't matter much. If there are more shares on issue the price will be lower to produce the same capitalisation, (if less shares issued then higher price.) A rise of a tenth of 1c lifts the DYL market cap by a bigger percentage than a 10c rise lifts some stocks.

Assuming that a share price trends towards the value that fundamental analysis indicates, then if DYL requires a higher market cap due to its improved prospects with Sprott and Borshoff on board, there will be a larger number of shares traded to make that happen, but the dollar value of the trades won't need to be higher because the shares are cheaper to reflect the larger number. So far (very roughly speaking) it's taken a couple of million dollars worth of trades to lift the market cap by about $20m.

What is true is that if DYL do a capital reconstruction at some point there is a risk of losing value if we are still in an overall uranium bear market. If however they hold off until we are in a U-bull market then a capital reconstruction can be an excuse to push the valuation higher. It depends on the underlying sentiment. I'm very glad they didn't attempt a reconstruction when the price was 0.003.

I currently have 4,565,000 shares which I intend to hang onto for the time being, as I think recent developments have been extremely positive for the long term future of DYL. If they can survive to the next uranium bull market, which I believe they now can, I expect a very good return on investment.