OTCPK:MEAOD - Post by User
Comment by
cambuson Aug 10, 2011 3:27pm
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Post# 18927761
RE: SSL B/E @ $1,800/oz.
RE: SSL B/E @ $1,800/oz.You never answered JRaffles question
That $20m dollars from SSL, is key to enable shareholders to receive 80% of the Bachelor gold output, without being excessively diluted - $20m is nearly half the company's market cap - therefore, to raise that money on the open market, shareholders would have had to give away nearly 50% of gold output to new shareholders, rather than 20% to SSL. I know which I preferred.
Please indicate any other commercially practical alternative that could have been used to fund the feasibility capital requirement. I recall that when a pp was being made about 0.30, RP indicated that they would issue shares at that price to any shareholders, in order to raise capital - However, SSL were prepared to put their cash on the table with a deal that should be mutually beneficial to MTO & SSL.
You never answered because it is unanswerable