The abject teat in the mouth theory "A teat in the mouth is worth two in the bra."
My first impression was that the timing of the offering was poor based on the projections by the "experts" of PM prices. However, the Venture Exchange is littered with the unfunded carcasses of exploration companies that wanted to postpone financing in anticipation of better terms.
The short of it is that no one has perfect knowledge. If the EU blows up or Iran is invaded in the near future, it may be difficult to raise money for anything. It would appear that management has secured their salaries for the immediate future with this move, but keep in mind that MAG is still an exploration company. In the short term MAG must fund their share of the JV as well, as continue to drill and develop their other properties. It is worth remembering that strong coffers can drill many holes, weak coffers can drill few, empty coffers can drill none.
"Keep the Faith, Baby." Adam Clayton Powell
Regards,
JA