Fund raising One other important factor to be determined, once we understand how much more has to be spent to get Wingdam operational, is how that willl be financed. I would imagine since these monies are going to be needed immediately OMM will be issuing shares at $0.35. Will it 15-20-25 million shares generating $5.25m, $7m and $9.75m gross before issuance costs etc and will there be warrants attached? OMM has no borrowings at June 30th, 2012, perhaps $2/3m could be raised from borrowings. Either way FNR likely will end up with less than 50% of the project.
With 20 million new shares issued the FNR interest will fall to 41%, fully diluted, but excluding any warrants attached to the new issue. Unless of course FNR takes up some of the new issuance. I'd be surprised though if they would want to add more of FNR's resources to this project since, with the loan, they're already in the game for nearly $18m, making it by far there largest exposure.
Depending on your view of the direction of the price of gold this project continues to be a useful hedge and should remain so, IMHO, during this period of global uncertainty, Europe, Syria, Iran to name but a few.