The amount of shares issued is irrelevant if ALL current shareholders are able to participate based on their current shareholdings. Noone is diluted unless they choose to be diluted.
If everyone has 1000 shares in a company or 10,000 shares in a company they are all in exactly the same position.
Assuming that Torrecillas moves into production the majority of current MUN shareholders will be the big losers because on top of now paying Anglo 8.5% interest, Anglo may also be entitled to a 3.5% royalty of ALL REVENUE from Torrecillas each year BEFORE any expenses.
A 3.5% royalty works out to be a much, much higher percentage of after tax profits. Assuming MUN is successful that $5 million loan could cost MUN a small fortune which all goes to Anglo.
MUN Price at posting:
28.2¢ Sentiment: None Disclosure: Not Held
