RE:RE:RE:RE:RE:NewsSome further thoughts. To date, 175,798,226 shares have been issued for $40,753,000 or 23 cents a share average.
You commented zadman about they wasted a lot of money drilling in areas other than Romero. To me, they had to take the gamble as the share price was too low to convince a bank to make a loan. Banks usually want a market cap of at least 50 percent of the loan amount in order to make a loan. The company was hoping to hit another big lode and move the share price to around 50 cents which would put the market cap at around $75 million which is 50 percent of the PEA $147 million of financing needed.
Equity financing of the $147 million needed to start operations seems to be out of the question. At 13 cents a share, they would have to issue well over a billion shares to raise the financing required.
A buyout at 23 cents (breakeven) is one possiblity, however, given that there are less than 2 million equivilent gold ounces, it would be hard to entice a major to buy it at a reasonable price.
Maybe they plan to use the $7 million received next year to start another drill program hoping to hit another Romero. That is the only use I can see for it now.