A lot of comment seems to be worried about dilution, and nobody...

A lot of comment seems to be worried about dilution, and nobody hates dilution more than me, but in this case how much dilution is there really going on?.
If the company was diluting simply to keep the company from the wolves, pay the cost of running the office and funding the christmas party I would agree. This has pretty much been the case for most gold miners over the last few years simply in order to keep the doors open.
However, if the company sells another 100,000,000 shares @ $3.00 ( and I am keeping the numbers simple here for my benefit so please don't correct me on them )then that is not as if the company is still worth the same as it was before the raising as it is now worth what it was worth plus the $300,000,000 that it now has in the bank. The company is now very strong financially and how many can say that in the present climate?.
The actual value of each existing share has not diminished or been diluted because the new shares have brought their own value to the company in the form of the cash that was paid to the company and is now in the bank.
The problem is that many shareholders in the modern market are traders who look at the fact that the placement is at less than what the share price was when the placement was made and everyone knows that the share price will TEMPORARILY go back to around the placement price. This then puts them in a loss situation so they dump, as we are seeing this morning, thereby making it a self fulfilling prophecy.
The company now is bigger and stronger so that when the next bear market for gold arrives then it will be one of the ones able to ride it out and not go under taking the shareholders money with it - as that would be the ultimate dilution.
Placements need to be below the market price or there would be no incentive for institutions to put in large lump sums in one hit. They could simply buy in the market and the money would go to traders and shareholders wanting to get out.
WITH A PLACEMENT THE MONEY GOES DIRECTLY TO THE COMPANY COFFERS.

Kind regards

Lockitt

Warning-- Even I don't listen to my advice.