TORONTO, ONTARIO--(Marketwired - Sept. 11, 2014) - NOT FOR RELEASE IN THE UNITED STATES OR TO U.S. NEWS WIRE SERVICES Belo Sun Mining Corp. (TSX:BSX) (the "Company" or "Belo Sun") has closed its previously announced non-brokered private placement financing (the "Offering") of 30,952,381 common shares of the Company (the "Common Shares") at a price of $0.21 per Common Share for proceeds to the Company of $6,500,000. Belo Sun intends to use the proceeds of the Offering to advance the feasibility study and installation license application at the Company's Volta Grande project in Brazil and for general working capital purposes.
When the above release came out it was assumed that the $6.5 million would carry them through the process of obtaining financing and starting plant construction. Wrong assumption on my part. They burned through the $6.5 million in six months. So If they still have a lot of stuff to do before they can get someone to give them a loan, they'll be broke again in 15 months if they continue spending as they have. Looks more and more like the share price will be so diluted by the time operations start (if operations ever start) that it will no longer be a good investment. |