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Dianor Resources Inc V.DOR



TSXV:DOR - Post by User

Bullboard Posts
Comment by waldenpawnedon Mar 15, 2010 10:56am
244 Views
Post# 16883081

RE: Waldenpawned ...

RE: Waldenpawned ...HM:

You said: "I want the freak'n bulk sample to begin ... I don't care too much about how we get to that stage ..."

I too want the bulk sampling to begin. My concern is that when the results start trickling out, our float will be at 800 million shares and Kodiak will own 75% of the company. This will be without even being close to taking Leadbetter to actual production.

If you don't think that could happen, read this doozy from the terms of Dianor's drawdowns on the ELOC:

All shares will be issued by Dianor at a price equal to

the volume weighted average price of Dianor’s shares on the TSX Venture Exchange during the five

trading days following the delivery by Dianor of a draw-down notice to Kodiak, less a discount of 10%,

subject in all cases to a minimum issue price of
.05 per share.

God knows I'm no financial whiz kid, but have you ever seen an agreement where the weighted-average is calculated following to the notice of intent? It seems to me that Dianor has essentially given Kodiak carte blanche to hammer the sh*t out of the share price in order to get the best possible terms (aka most possible shares, aka 5 cent shares) on any draw down. We don't even have the chance to pump the SP in order to minimize the dilution. I mean, what would you do if you were Kodiak, the SP is 12 cents and Dianor tells you it wants to draw $500,000. You now have 5 trading days to determine the average price of Dianor shares. Do you sit tight and hope that the market works in your favour? Doubtful. The beauty for Kodiak is that with each draw down, they get more fodder with which to hammer the SP on the next notice of intent.

You also said: "it's simple ... if rock value rocks ... every investor rocks" Even with 800 million shares?

My hope is that Bishop is correct and that other arrangements are being made or that we can turn the alluvials into a money-making operation for under $5 million (Kodiak still ends up with 12% of the company) and use the proceeds to fund the bulk.  At this point, both seem a bit of a stretch to me.

I'd be interested in hearing what you and others have to say.

Cheers

Walden


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