Aurcana Silver Corp V.AUN.H

Metals & Mining Silver

Aurcana Silver Corporation is a Canada-based company, which is engaged in the exploration, development, and operation of natural resource properties. The Company’s development properties are the Revenue-Virginius mine (the Revenue-Virginius mine or Ouray), located in Ouray Colorado and held through the Company’s 100% owned United States subsidiary, Ouray Silver Mines, Inc. (OSMI) and the Shafter silver property (the Shafter Silver Project or Shafter), located in Presidio County, Texas and held Aurcana Silver Corporation. The Revenue-Virginius mine is located in southwestern Colorado about 5.5 miles southwest of the town of Ouray. Access to the mine site is via County Road 361. The Shafter Silver Project, which is 375 miles southeast of El Paso, in Presidio County, southwest Texas, within a historic mining district.

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Aurcana Silver Corp

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Post by JonEcashon Oct 19, 2009 2:55pm

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Post# 16400859

Financing.

Just read through the posts and here is my take on the financing. First of all you need to separate this financing from Shafter. Other than the small bit of cash they will use for feasibiility purposes, it's primarily for La Negra. And yes it is indeed dilution, but that negative is worth it when we get an even higher impact in profitability. At the end of the day, share price should be based on profitability or a multiple on earnings per share. In my example below you can see the EPS that results from a 15% dilution of shares, but returns a 50% increase in profits. Now obviously reality is more complex, but I have simplified it so that the gist can be understood by all here:

At the end of the day the valuation increased 30% even though we had to initially dilute in order to achieve it. Looks worth it to me!

J$

ps. Looks like an insider sold to take part in the financing.... I have no problem with that.