Camrova Resources Inc V.CAV.H

RE:RE:Irishmidas...Thanks for the explanation...

[mining_pays_my_bills]

Magnum, I know this post is not directed at me but I want to comment on it anyways- I think this is exactly why they haven't tried to raise financing- what shareholder is going to accept that level of share dilution? To raise the money we could double the amount of shares out there, and thereby half the value of our existing shares. Or, we could take a 2% reduction in ownership (which is 20% of our stake), and should theoretically only reduce the company's value by 20%. Additionally, until the very recent (April) re-negotiation of financing it was unclear if Baja was going to be on the hook for 70% of the over-runs. This is the way the original documents were written because when KORES was brought in Baja was 70% owner and KORES 30%, and their contrbutions were to be proportional to their ownership. As BAJ stake was reduced, those documents were not updated to reflect this. Investors were scared that we were gonna have to pay 70% of the overruns, and no doubt BAJ management was too. That would not have been a good time to seek additional funding, either by private placement or share issuance. They would have needed too much money, the dilution would have been crazy. Now they worked it out, BAJ commitments are clear (relatively), and not so scary, and so seeking money is a little easier. I hope they don't do it by share dilution though, for the reason I stated above- it has a way worse effect on SP than reduction in ownership. I think they should try to get a loan for the 20million, especially now that they have 94million$ in MMB equity to secure it against, it might be easy enough to get.