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Metanor Resources MEAOD

Metanor Resources Inc is engaged in the production and sale of gold as well as acquisition, exploration, and development of mining properties. It projects include the Moroy Project and Barry project among others.


OTCPK:MEAOD - Post by User

Bullboard Posts
Post by JRaffleson Jul 23, 2010 9:21am
649 Views
Post# 17291209

Flow Through Shares [producer investors]

Flow Through Shares [producer investors]

It may be relevant that this small level of fund raising is by way of "flow through" shares.  These share investments are usually made by existing gold mining producers, who seek to establish an investment in a junior, in a cost effective way.  I understand that the investmnet cost of the flow through shares are treated as deductible expenses against profitable mining operations made by the investor. 

The ultimate flow through investor, may therefore have a longer term interest in Metanor's properties. All the flow through investments that I have encountered, are a preamble to a further stake / partnership.

I agree with an earlier post that $2m is a relatively insignificant amount to go the the effort to raise, when it is clear that significant monies larger cash funding will be required in order to complete Bachelor Lake and make Barry economically productive.  Accordingly, this could be a short term cash flow fund raising exercise, prior to more beneficial terms that could be negotiated when the Barry 43-101 is announced. The 65p issue price could be a favourable "entry price" to a potential producer partner who may be prepared to add substantially to capital at a higher price after the release of the 43-101.
Bullboard Posts