There’s a couple of different models to run/finance a junior exploration company - either continue to issue more and more script to fund activities or farm out the costs to a major.
MGV has limited resources to do all the things they want to around Break of Day, Lena, Mainland and the wider Lake Austin area. They need funds and they need more geos/ human resources. EVN bring that. It’s near on impossible for them to be able to have 3 rigs out at the three key targets atm drilling and continue to do field activities at lake Austin AND hold the share count under 1 billion.
If they want to take advantage of a good gold environment they need rigs drilling - and they’ve stuck a deal for them to be able to finance this without huge dilution but I agree they have given away a bit too much..
MGV Price at posting:
7.8¢ Sentiment: Hold Disclosure: Held
