Royal Nickel Corp. RNKLF

$RNX: The following points, which will limit dilution

[pierreg]

The following points, which will limit dilution:

-Shares outstanding as per the RNX Short Form Prospectus April 1st 2019 and if and when, the purchase agreement option is exercised. «503,921,478 assuming full exercise of the Over Allotment Option. In the event that the Company exercises the Higginsville Purchase Option, such decision expected to be made by the Company by May 7, 2019. To a portion of the A$25 million cash component of the Higginsville purchase price 10 M$ CAD» @lexcon wrote on April 2nd «The prospectus shows $10m (cad) of the PP deal earmarked for the purchase of the mill if option is exercised, so that implies they expect to be able to fund the remaining $15m AUD of the cash portion from the mine/milling production in the 70 day window. » If so, 25 M$ AUD in cash will be fulfilled. Remaining 21 M$ worth of RNX shares at minimum price of $0.49 per share = $19,900,451 CAD or 40,613,165 shares 503,921,478 shares + 40,613,165 = 544,534,643 shares;

-You asked to look at the history and so I did, the company and its initial public offering was December 9th 2010, roughly 8 years and 5 months ago and 19,500,00 shares were issued at the time. Within 544,534,643 shares, if the purchase option gets fulfilled, the following private placements are included: the recent one with 28,163,500 shares with over-allotment closing in April and 19,891,165 PP shares which closed January 18th 2019; 

-BarristerIII and his conversation with Russell Starr an advisor to the company as per https://ceo.ca/@pierreg01599501?c768efacb0de «He also insists this latest PP "isn't dilutive"--seemingly meaning that the Higginsville assets are net accretive. Didn't 100% commit to no new stock sales, but anticipates that once that deal closes, they'll likely use debt for further financing. »;

-Production if the mill option is exercised: «Beta Hunt (RNC expects that processing cost savings would be in excess of C$15 per tonne, or a 35% reduction), and add an expected 40-45 koz of gold production in 2019.
[…]
"The timing of this transaction is helpful as our drilling program has sufficiently advanced to allow for commencement of a limited restart of bulk mining in areas with mine development already in place. »;
https://ceo.ca/@newswire/rnc-minerals-announces-purchase-option-agreement-for

-Small scale production is ongoing and will generate revenue.