RE: Best Financing DealGeneral info on flow-through shares:
Recent shares issued were flow-through. These shares come with an initial 100% tax deduction, the same way on what would occur if you put money into a RRSP. These "special" shares are typically sold at a 10-20% premium over the "regular" share price.
As exploration companies typically have more expenses than income they are "selling" their expenses to high income individuals that
A. Want tax deductions
B. Are prepared or want exposure to the resource sector/stock
In return the company forfeits some of its expenses to raise capital at a higher share price. That is why CBP can sell shares for .35 instead of the current lower stock price as well as why someone would pay .35 instead of picking up cheaper shares. Good tip to look on all private placements to see if they are flow through units or non flowthrough units being issued to get a better idea of what the company is selling compnay equity for.
Waiting for the January rally after tax loss selling.