Debt Financing Allow me to relate as it pertains to RCK and Venture overall.
The fact that RCK secured a debt financing is of course excellent, but it also shows why the Venture has become a bottomless pit of lost wealth.
The results that RCK has secured from their assays should have been an opportunity for banks to pile into this in a financing at this low price, but they didn't. Why?
The Canadian Government must end the flow through share program. It is killing these Venture companies. You can not find a better example than RCK who should be turning down the PP offerings.
The problem is when flow throughs are available for tax losses, then that is all that becomes de rigeur.
So no one buys plain old PPs anymore. They just buy flow throughs, then companies like Marquest/Mineral Fields sell those flow throughs and any price because it is just a tax loss anyway.
If Marquest hadn't sold 6 millions RCK shares at 02 three weeks ago, the stock price would be 6 right now.
The Venture system is broken. The flow through program has to end. It is ill designed. The Venture down from 2400 to 1100 since it began is proof.
Congrats to RCK for finding financing. Their results were that good. But pity the rest of the Venture companies drowning to catch their breath on fumes for money with the vultures circling to offer flow throughs they will only sell anyway and any price because what price they get doesn't matter anyway - because it is a tax loss write off anyway.