Salazar Resources Ltd V.SRL

Share Drop

[ngobe]

I believe is related to the last financing shares becoming free trading. 

From Sept. 10, 2010 news release found on SEDAR:

Salazar Announces Closing of $5 Million Financing

VANCOUVER, BRITISH COLUMBIA – September 10, 2010 - Salazar Resources

Ltd. (“Salazar” or the “Company) is pleased to announce the closing of its brokered private

placement announced on August 18, 2010 with Canaccord Genuity Corp. (the “Agent”) of

3,639,100 Units (the “Units”) at a price of $1.10 per Unit for proceeds of $4,003,010. Each

Unit will consist of one common share and one-half of one common share purchase warrant (a

“Warrant”). Each whole Warrant will entitle the holder to subscribe for one additional

common share of the Company for a period of two years from the date of closing at a price of

$1.50 in the first year and $1.75 in the second year. The securities issued are subject to a 4

month hold period expiring in January 2011.

In addition, the Company completed a non-brokered private placement, where the Company

issued 909,100 Units at a price of $1.10 per Unit for proceeds of $1,000,010.

In connection with the sale of the Units the company paid a cash commission equal to 7% of

the gross proceeds and issued non-transferable share purchase warrants (“Broker’s Warrants”)

equal to 7% of the total securities offered. Each Broker’s Warrant will be exercisable to

acquire one common share of the Company for a period of 24 months from the closing at

$1.10. The Agent will also receive a corporate finance fee of 25,000 Units.

The use of proceeds raised from this issue will be used to fund continued exploration at the

Company’s assets and for general working capital purposes.


But if the management (i.e., Mr. Salazar and his appointees) had done a better job, especially if financing was done with more solid investors rather than traders (likely selling shares and keeping the warrants) and at higher prices this shouldn't be happening.  It all comes down to management - i.e., Mr. Salazar.  He is proving himself to be a poor manager and has run out of excuses (e.g., country risk).  Time for him to face the reality and find a better manager / CEO to save the company.  But then again I don't think he is that smart to admit his shortcomings first and foremost to himself.

Regards,
NG