RE: Reasons why I dont like this dealLogan Copper - obviously you only invest into junior mining companies on the TSX correct? I am not sure you have seen the market conditions out there lately but any company that has under 60 million shares out and they own 100% percent of 860,0000 ounces and growing in one of the most politically friendly mining jurisdictions in the world is nothing but a screaming buy! This is the time to get getting everything at 50 - 60 percent discount to market!!!!
From what I see aftering talking with a company rep. on Monday after the stock was halted they had 2 choices.
1. Hope the market comes back (Huge Gamble) and raise some money in Dec. I cant see the market coming back in Dec.
2. Raise sosme money own a 100% of the company and go out and raise some money 5- 6 months down the road.
Its a little tough to explore when you have no money. You are complaining now about this stock. How would you like it if they had to raise 3 million at 5 cents or 2.5 cents, with most of that being flow through.
You talk about poor working capital management? My friend have you ever spoke with Ike Osemani the President? They came in under budget on their last exploration campaign by almost a million plus dollars? You call that poor management. Hell that got them a resource estimate and enought money that they could continue to explore on one of the best gold plays in Ontario.
I am not sure about Altos cash position but $1.3 million for 860,000 ounces with the potential to increase with these 5 zones is a steal to me? Did you want to wait for the market to get better so that it would cost FDN more money? That doesnt seem like a very smart move - strike when the market is low. hell if the company was trading at 25 cents and gold was 19000 per oz Alto would be asking for a hell of a lot more. That is business 101 right there.
Not sure why you are concerned about dilution unless you own like 51 percent and now you only own 49 percent.
People that buy junior mining stocks that are no where near feasibility or pre feasibility know they are going to be taking a beating once or twice in their time. not sure what you expect out of a MICRO cap company that has to SPEND money to move forward with none coming in. Did you expect to them to raise money for nothing and not have to give any shares out in return during your whole investment time with the company?
Sheesh - I hope you are not anybody's investment advisor during this time.