the deal with sprott i know a lot of us have mixed emotions about this deal with sprott, just like how i almost dumped all of my shares at 11 cents when they announced the first financing with them. yes, management has added a large amount of dillution over the past year or so and the price seems a little steep to me to essentially 'gamble' on the price of gold moving up. i'm surprised that a management team that has been very slow and steady has decided to get this aggressive so close to the finish line. If gold goes to $1900, they look like geniuses, but if it goes to $1200, they look like morons. However, if there is a time to gamble, this is probably it. gold may go lower for a few months, but most see the price rising substantially into the fall. Management also talked about being able to move forward as well, and its likely that the increased cash flow will allow them to be further ahead by 2013.
I know Sprott is villianized by many, but keep in mind that they make money repeatedly. They'll want their loan paid back obviously, but they'll also want profit on their shares, and they own a very large chunk. To have success in the junior mining game, most companies have to climb in bed with a major company or an investment bank. I've seen Hoschilds cut the bottom out of their partners' pockets and let them starve to death and I've seen many bankers offer finaning and then sell rellentlessly and only hang on to the warrants (or sink the share price after they make their profits and the warrants become free trading). Since sprott came on board, the share price has steadily improved, so I'll give management the benefit of the doubt. Besides, when the Sprott boys talk, people listen. when the timing is right, I wouldn't be surprised to see one of them drop our name on BNN, which could create a huge boost in awareness and provide some momentum for the share price.