capitulation near completion, page-9

Hey Seaworthy,
The only problem at this stage is DEG has no cash so needs to raise some somehow. But as confidence has been lost by holders the SP has dropped so far that a placement at the current SP of enough shares to fund another years drilling program would cause a ridiculous amount of dilution and drive the SP even further south. As well as wiping out current holders completely. So a better thing might be to sell off some assets to JV partners etc but finding a cashed up partner at this point in the economic cycle isn't easy as all are struggling to raise funds. PLY was looking to be good for some $ if it bought Wingina Well but now they have merged with SXG they have some other projects that will be developed first, so the gold mining at Turner river area is now on the back-burner. Ditto for EMG with the Beyondie Bluff Iron, they are currently broke, and in no position to buy that prospect off DEG. So really DEG needs someone to buy into the Argentinian project with some cash to bail our DEG management costs, and cover the next round of drilling. I suspect selling the NZ prospect area and project is not at all a cashworthy proposition. Maybe fingers crossed that management can convince a Chinese cashed up partner to JV in Argentina!