GREY:ADEXF - Post by User
Comment by
Greenandgold.on Mar 06, 2012 5:53pm
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Post# 19635628
RE: RE: Still Broke
RE: RE: Still Broke One doesn't need to go to Toronto to know that AXI is dead broke. There are things called financial filings (AXI only had $3.1 million working capital at the end of September). There's a thing called a burn rate (AXI burns cash faster than MC Hammer). Almost 2 financial quarters have passed since September, that $3.1 million is obviously spent. There are AXI's own press releases and technical reports that estimate that their DFS for Roche Bay is budgeted for $20 million.
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Even with the $5 million debenture, I'm not sure AXI has enough money to complete the DFS. But if Wardrop is being paid for their work on the DFS then AXI certainly has no money for anything else.
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There will be an equity raise soon. You know Gingerich's salivating with the rise in AXI's stock price. Will the market support 20 million new shares at 33 cents each? $6.3 million will keep the salaries and rent paid for another year or two. Maybe even a few drill holes this summer!