Agave Silver Corp. CRMXF

No Cash = DILUTION

[BudSpud]

Bottom line is that the grades didn't meet expectations and they are now out of cash. To move forward they need to dilute the current shareholders, and they already have 152,162,916 outstanding. The good thing is the 60 million , or so, options and warrants will never see the light of day.

 

They need 3.8 million and that translates into 76,000,000 shares at 5 cents and then throw in a 1/2 warrant and you dilute current shareholders to the tune of  114,000,000 shares, or 74.91%. That's like taking 75% off of the current share value. That's .75 x .055 = .04125. So, in true value you're left with .055 - .04125 = .01375 of value. It's a bust, no question. At this point you should just start over because you don't know if the next drilling is going to hit economic grades. Reverse split it to 20 million shares and do a PP at higher prices.

 

Those that are down should just book the tax loss and buy into the newly structured company if you think they can prove it up.

[easycoder]

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[robey743]

BudSpud   1 - The share price slide was a result, not of missed expectations, but of interpretations of resources between drill holes – Distance between drill holes was too great to support numbers presented in former in-house NI 43-101 Reports. 2 - The share price slide was also a result of the exit of investors that failed to see, (or take the time to find out) what they were invested in

[BudSpud]

1 - The share price slide was a result, not of missed expectations, but of interpretations of resources between drill holes – Distance between drill holes was too great to support numbers presented in former in-house NI 43-101 Reports. The market expected better results and did not get them. As a result the share price is reflecting what the market thinks of them. 2 - The share price slide was

[easycoder]

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[robey743]

“The market expected better results and did not get them. As a result the share price is reflecting what the market thinks of them.”   By your own words, you define the ‘market’ as, “Investors that failed to see, (or take the time to find out) what they were invested in. This same group, evidently, did not know the value of the actual reported resources and the value per share those resources

[ASHRAM]

management should not raise cash and do dilution.they should sit tight and wait few months if gold and silver go up big time all junior stocks will go up and than they sell share or whole company.they waited 7 years why not few more months.i will sell in next two months to take tax loss i give up on management.thanks all posters.

[BudSpud]

Have to laugh at your response. Not only do you lie about what I stated you have to resort to child's play, too. I suppose it's understandable given your inexperience in the markets. Don't get married to one stock as it will often burn you, like CMA obviously has. Spread you wings....... there are other stocks out there... You can't just keep HOPING for better things and ignoring

[crunch55]

Bud...I believe the market has spoken and that is reflected in the current SP....let's see if management can pull a rabbit out of the hat...>

[easycoder]

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[Curvature]

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[BudSpud]

this part is key:- "Possible extensions of zones across fault zones were noted during the resource calculation and these should be tested as they represent the potential to rapidly increase the resources"   The possible potential is why the share price is 5.5 cents. The possible potential is why the stock is going to be diluted. The possible potential is key in that statement. It

[wegotcreamed]

boy did we get boned.

[Curvature]

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[NineLives]

Hmmm sounds like KBR (the boning part) and yes Curve I do get it, when the bid side remains weak it means it's hard to exit.  Goes for both KBR and CMA.  Good luck.

[Curvature]

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[robey743]

BudSpud Your response, while accepted by some, is not what I would expect from a self-proclaimed successful, intelligent, objective investor. Your comment regarding child’s play and questioning my investing ability and/or intelligence may briefly distract investors from reality, but it doesn’t dispel the facts. Rather than address actual costs of moving the