it's starting to look terminal now. A very expensive business...

it's starting to look terminal now.

A very expensive business model with huge land package, holding costs, exploration commitments and project payments. This all looked doable with $10m in the bank, but that was gone in the first 12mths (cash 31 Dec 2022 was$1.3m) . IMO poor capital management. Whilst the market has been terrible for small caps (non Li) FXG has had a couple of opportunities to raise money off the back of solid results/SP spikes and volume. But have been flat footed and choosing to only raise small amounts, presumably to avoid diluting large holders. They are now relying short term on a CN from MDF which will either be repaid from a cap raise at all time lows? or converted at 8c, thus increasing MDF's exposure above 20%. But they still need money and lot's of it! Drilling season starts April. A couple of scenario's could play out-
- strategic equity investor
- earn-in - get diluted at the project level and still need to raise capital for corporate costs.
- re-capitalisation with cornerstone investor - massive dilution, but potential for existing share holders to participate and have another go.
- MDF makes a bid to bring FXG back into their stable. (assuming MDF can raise exploration dollars).