RE: RE: NEWS! Spec... I agree but I just wonder when and how the dilution is going to end?
There is a~$6M payment due by July 31 (i.e. less than 2 months)... if we don't make that payment our ownership stake drops by a whopping 25%. That is in addition to the ongoing monthly dilution we have seen and will continue to see from missing monthly payments. As detailed recently if they don't make any payments between now and Aug 1 2013 (and we have also been told they don't expect profit distributions from production until Q3) GGN (i.e. shareholders) interest dilutes to 9.8%... and when ownership drops below 10% it reverts to a 3.5% net profit interest. No end in sight is there?
A short time ago SHAREHOLDERS bought into a 100% owned 2M oz Au PRODUCING property/deposit in Nevada with documented upside potential... and now we are facing our 100% ownership stake diluted to a 3.5% net profit interest IN JUST 6 SHORT MONTHS!? Terms of which were signed in Jan 2013? As of right now shareholders will be left with a 3.5% net profit interest likely just weeks before profitability. Also all happens just weeks before AGM. Really? Something is not right about all of this IMO. Seems like an awful lot of coincidences to me. Too many.
Nothing from company stating discussions or plans underway to retain ownership interest in Borealis. Maybe there is something in the works. All I know it the man/CEO who brought in our great partner Waterton has decided simply to give up. The same CEO who admitted they would need additional funds to retain remaining interest but was confident they would be able to raise the required funds. Is this still the case now that he is gone? Again, no idea. Did he ever own any shares? Does our Board own any shares? Does anyone running this company care about shareholders? Share price undoubtly says 'no'.
"In addition, if the interest of the Company in Borealis is reduced to 10% or less, it will be converted into a net profit interest of 3.5%."
"If the cash calls are not met by Aug. 1, 2013, the company will be diluted by up to 25 per cent, bringing down its ownership interest to 9.8 per cent if it does not make any monthly instalment payments under the senior credit facility or any of the cash calls up to that point. "
"The company does not expect to be in a position to satisfy the monthly payments in cash or gold unless it raises capital or until such time as the Borealis mine has increased its gold production levels and has made a distribution to its two members. The company anticipates it is unlikely it will receive any distributions from the joint venture prior to the third calendar quarter of 2013."