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Moly Mines Limited T.MOL



TSX:MOL - Post by User

Bullboard Posts
Comment by hkaasknownon Aug 31, 2009 11:51pm
209 Views
Post# 16266215

RE: RE: RE: RE: restructered debt is a good thing

RE: RE: RE: RE: restructered debt is a good thing

Good one joogets. For MAA,  the full financing (70%) of the potash plant comes at the expense of massive share dilution you mentioned. Or at least that's the plan. Not the ideal deal, I agree.

I am thinking of getting back into MOL. Can you or anyone explain the following from the NR? I assume each warrant equates to one common share, but wasn't clear.

"The Noteholders are to be issued with 5,958,039 Warrants in the Company at an issue price of A$0.0001 per Warrant maturing in 10 years from the date of grant as part consideration for completing the restructure"

$25M in new shares and 6M warrants/shares are about 30% dilution, to buy more time pretty much. That's the minimum. Not ideal either.

$43M plus accrued interest payment coming up in two months, and according to the June report, they had $64M in cash. I would say they wouldn't have much left after Oct 31st, unless they find a JV partner, or a new deep pocket.

But then, no risk, no gain. Just trying to see a good re-entry point. Good luck.

Bullboard Posts