RE: Assumptionromara, they need every penny of that money to re-start the mill and the mine. Too early to think of acquisitions. Any surplus funds will be needed to pay back the parent company YNG in Canada, to enable it to fulfill (in part or in whole) its flow through share sale commitment. If I recall correctly, they have until Dec.31 2009 to still spend approx. $14 mil on exploration in Canada, otherwise they would have to refund the equivalent of the personal tax. That money should never have been diverted to Nevada. Dickson thought it was a very temporary thing and he got caught.
I am surprised that people on this board are surprised the company is trying to induce early exercise of the warrants. They have no alternative to doing that. They need the money now, and the warrant holders are not a charity, they need an inducement for early conversion. My only worry is that not enough of them will convert.
Let's keep in mind that when these warrants were issued as part of the rock bottom financings, any one of us could have bought on the open market as many shares as we wished for a lower price than the financing price. At one point in December, shares could have been bought on the open market for as little as 2 cents each. Some did buy and averaged down, some did not. Individual choices.
This has been one of my worst investments. I should have sold a long time ago, but for whatever reason, rational or irrational, I did not. One can still sell any time they wish.
In my previous post I worked on the assumption of 150,000 oz per year per the NR. But the operation produced more than 300,000oz per year and under favourable conditions still could do so. I guess that promise is what kept most of us here. A mistake? maybe. But if it ever comes to pass, even with the massive share dilution, the prize could be significant. Can we do better elsewhere? maybe. Why we haven't done it? don't know. Maybe human nature and fraility, but let's not continue complaining about it.