the cost of building a mine....share dilution!

Come on guys!!!

I keep reading here about feasibility studies and off-take and project financing but one thing everyone needs to realise is that if a mine is to be built, RES will have to raise substatntial equity as its contribution to the capital required.

Lets say the capital cost of the project is US$100M. These days, if you can get bank financing, you may be able to borrow 50% or so of that amount.

In that case, RES will be required to chip in approx US$50M of equity funds.

Lets say Jury and his team of clowns can keep the share price above 30c......a big ask the way things are going!!!

That will mean nearly 200,000,000 shares will need to be issued @ 30c taking into account AUS / US exchange rates etc.

That means the company will have almost 300 MILLION....thats right 300 MILLION shares on issue after such a financing. That is the eqivalent of 3,000,000,000 (3 BILLION) shares under the old structure!!!

Does everyone see what I am getting at here??

Chief clown Paul Jury and his buddies need to be shown the door and quick for doing this to RES.