RE:Greats News! FinancingAlmost 115% dilution (more than doubling the outstanding share count) is "great news?" Ummm, ok.
If they double the share count with their assets maintaining the same value they have today, to keep their current market cap, the share price will be cut in half.
To maintain the current SP, they have to more than double (113.6%) the value of their assets. "Great news" would be the NR explaining how they propose to do that.
Chadly wrote: Vancouver, British Columbia (FSCwire) - Saville Resources Inc. (TSXv: SRE, FSE: S0J) (the "Company") is pleased to announce that it has arranged a non-brokered private placement. The arrangement is for up to 10,000,000 units (“Units”) of the Company at a price of $0.05 per Unit for gross proceeds of up to $500,000. Concurrently the Company will also be offering up to 25,000,000 flow-through shares (“FT Share”) at a price of $0.06 per FT Unit for gross proceeds of up to $1,500,000.
The Units will consist of one common share and one share purchase warrant. Each warrant will entitle the holder to purchase one additional common share of the Company at a price of $0.10 per share for a period of 24 months from closing. The flow through will be one common share and no warrant.
Proceeds of the private placement will be used for advancement of the Company’s exploration projects and for general corporate purposes. The Company may pay finder’s fees in connection with the issuance of the Units under the financing. Closing of the financing is subject to all regulatory approvals, including the approval of the TSX Venture Exchange. The securities issued in connection with the financing will be subject to a four-month hold period from the date of closing in accordance with applicable securities legislation.
ON BEHALF OF THE BOARD
SAVILLE RESOURCES LTD.
“Mike Hodge”
Mike Hodge
President
Tel: 604.681.1568
Email: mhodge@sav
Read more at https://www.stockhouse.com/news/press-releases/2018/07/20/saville-resources-inc-announces-private-placement#y4rA4ORZQezIydAF.99