funding for up to $25m from pacific road capit, page-17

"can you explain exactly why this will be the case as a result of the deal... in terms of how this funding will constraint on divis and stop us reach those prices."

Not talking about constraints. I'm taking about adding 60 mio shares to the existing 270 mio (i.e. >20% !!!) at a stupid price that is well below what I consider fair value. (Imo this co should currently be worth at least 40c).
20% dilution means 20% less dividends.

I guess Glencore now has the right to demand additional shares at this price under its non-dilution clause, too. Even more dilution. Yay ...


Yes, this deal allows us to drill more + faster. But so what? We won't get to mine any ore at Nymagee deeps or Nymagee North before we dig out the current resource. Neither will we build a plant for Federation soon, even if drill results are positive.

It would be a different story in my book if we neded more cash to finance stage 2 and needed to prove to the banks that there is lots more ore out there. But we are fully financed for moving on on our own, and management should be confident enough that going to stage 2 is profitable.


Could this gamble still have positive results? Yes, if we find some bonanzas at our other projects. But we didn't meed to take that gamble, and I would have been happy enough to discover them a year later and keep those 20% of profits for the current shareholders ...