Long term shareholders....
…. must demand that EGZ finance Molo's CAPEX by debt only.
Try taking the $162.043,315 required for Molo's CAPEX based on 42% equity financing (per the PEA) and apply our 75% JV interest. It would require 279.7 million new common shares based on the 03/08/2013 close of 18 ¼ cents. In such a case dilution would be a major drawback and few investors will buy egz shares.
Also what will become of the 21,666,667 warrants due to expire on May 5, 2013 that have an exercise price of 50 cents. These might constitute both a minus and a plus, a lesser minus for dilution and a plus of up to ~$10 million in cash to the company, if fully exercised but we're at 18 ¼ cents. I believe our share price would have to be 75 cents for all the warrants to be exercised.
In the SEC Form S1 It said... However, if the common share purchase warrants are exercised, or if the broker warrants are exercised on a cash basis, we will receive the exercise price of such warrants. We will pay the expenses of registering the common shares sold by the selling shareholders. See the section entitled "selling shareholders" beginning on page 13 of this prospectus.
Here's the SEC Form S1 of May 29, 2012
https://www.faqs.org/sec-filings/120529/Energizer-Resources-Inc_S-1/