what is aurox worth ?, page-3

The company is not really worth much if the deposit is not utilised. So let's assume the deposit gets utilised, and AXO is a player in that. Money is needed. As I see it, there are 3 choices or a combination thereof
1. Equity
2. Debt
3. Cornerstone investor (sugar daddy).

Let's assume, for argument's sake, $1B is needed.

Choice 1 alone requires 4B shares to be issued, assuming a raising price of 25c. Given ~0.2B shares currently, that is a 20x dilution, so adjust your figures accordingly.

Now it is extremely unlikely such a choice would be made.

Choice 2 or 3 only also seems very fanciful.

In reality, a combination of 1 and (2 and/or 3) would be required. The question then becomes how much is made up of 1 (equity). Even $100M (10% of the nominal $1B) at 25c sees the share base triple to 0.6B, and asking 2 or 3 to stump up the remaining $900M is still steep. Maybe $200M-$300M equity will be required?

Now I'm sure the $1B with 10% as equity and 25c raising price I've selected can be debated, and people are free to consider their own numbers. The point as I see it is that the equity base looks very likely to become a lot larger in any deal that eventuates. Yes, the value of the company overall will go up if they get the finance and get a profitable business running, but it will be spread over many more shares.

I hold AXOG only