RE: dilution and mismanagementI believe that Dr. Parra was in fact that bad at financial management. He was the CEO at the time. But he is truly a geologist, not a business manager at all. HE did not want to dilute and for this reason he sold shares to Sprott.
Be aware that at the time that he sold 500,000 shares to Sprott he still held more than 10 million shares so he has personally taken a $20 million hit on this price decline. Furthermore, he repurchased some shares of the company in the open market as the stock fell. Additionally he loaned the company $500,000 as the company's liquidity was getting weak and the stock price was falling and no PP was possible at that moment.
Finally, the company was in fact profitable in 2007. This is why there was the belief that additional dilution should be avoided at all costs. And who would have thought that the entire venture exchange would fall 75% from June to November? Who would have expected that all financing would disappear that quickly?
Most importantly we now have Eduardo Luna running the company as CEO because everyone has acknowledged that Dr. Parra made mistakes. In case you don't know, Eduardo ran the Mexican operations for a little company known as GOLDCORP for decades. And you might also like to know that Dr. Parra discovered and brought into production 12 mines for Goldcorp when he was with them. These guys played a substantial role in the building of Goldcorp over the years.
All of the mines Dr. Parra brouht into production for the Luismin division of Goldcorp were high grade epithermal vein systems in Mexico. And what are they developing again? An epithermal vein system in Mexico.
Best of success to everyone, and most importantly do your homework.