125% Share Dilution NowI have to say, I'm not happy with this kind of dilution. I haven't seen many companies doing a 125% dilution for cheap money when there is a good cash flow around the corner and Gold is on the hype.
Why is the company doing this ? Only because they have so many exploration projects to fund ?
Last year the company had around 20 mio shares fully diluted
Dec PP: 5.1mio new shares + 5.1mio warrants
Mar PP: 7.2mio new shares + 7.2mio warrants
20mio + 25 mio = 45mio shares (125%)
Seems that royalty money is coming later.
The Company is active in Argentina, Peru and Colombia in highly prospective mining regions and its Management Team is one of the most experienced in the field today. Golden Arrow currently has just over 20 million shares issued and outstanding and a 1% NSR on Yamana's Gualcamayo property currently being put into production with quarterly royalty revenue expected to start in the 3rd quarter of 2009.