I can assure you that further dilution is his least preference. However if getting debt finance is dancing to a banks unrealistic tune, then it all needs to be weighed up which is best way to go.
If further dilution is made, and I am not saying it will be, be assured the alternative was not worth it for shareholders. Ian always has shareholders in mind but sometimes commercial realities make us feel he is not.
I have said before that dilution of shares for a small company to raise for eg $10mill doing greenfields drilling and getting average results and then going back to shareholders for more is the worst type of dilution. These companies end up with hundreds of millions of shares with near worthless equity.
In IFE's case if another 10mill shares at $1.25 assures getting this project underway without any bank leash on us, then the quicker we can make money the less dilution later on, as we use the profits for the next stages of production.
TRF will benefit big time as another say $10mill in profits share means no dilution for a long time while they explore.
TYX Price at posting:
93.5¢ Sentiment: LT Buy Disclosure: Held
