Post by
templetooth2 on Apr 18, 2024 10:21am
Financing Fiasco du jour
Today it's Lithium Americas. LAC. For the last month it's been bouncing around the US$7 level and the hammer dropped with a bot deal last night. At $5. OUCH. Raising $275 million before approximate $42 million greenshoe.
We all know that Skeena will be similarly bludgeoned when not if. I still maintain SKE should pursue a convertible debenture, convertible into gold once production starts. This is essentially pre-selling a very modest part of your gold production. 100,000 ounces at $2200 per ounce raises $220,000,000 US.
You price it low so that the conversion feature is exercised, meaning that the debt is (almost) guaranteed to be liquidated.
How could this idea be worse that the 25-30% scalping you will witness when it's Skeena's turn to face the guillotine?