RE:Great news but..... share dilution incomingA better question is "when will it affect the stock price?", 2 lines before the mention of the 25MM, it states that total 2014 capital expenditures are expected to be 8.9MM. We just had an SEO financing from 2014 PDAC metals and mining conference of 5MM.
25MM/3Years=8.33MM per year.
Ucore management has stated that any additional funding needed in 2014, will be used toward funding the BFS. (something I talked about a few weeks ago)
The 25MM sounds like the total budget for capital expenditures during mine construction. That time frame covers between now and Q1 2017. It also includes the cost of the bankable feasibility study to be completed before or during Q1 2015. After that, were in offtake territory. Remember back to the "fish will be jumping in the boat" quote made by Mark MacDonald?
Right now, I am not worried about minor share dilution. In a development stage company, investors should be worried about fiscal irresponsibility, due to inexperience of management and lack of direct oversight. We don’t have that problem because don’t think for one minute that the AK government does not have a tight grip on the risk profile of a 3MM loan, not to mention a 145MM loan.
What this memo proves, is that our company’s management will experience oversight from two sources. According to current peer reviewed Finance research, more oversight = more stable stock price, and higher equity returns. This is largely due to the constraints placed on cash flow relating to investment decisions. (Thanks AIDEA)
Cheers to my co owners, this is great news. (GLTA, except the troll)