RE: RE: RE: Why another PP now? Actually, you're sort of right, Kade. For some reason I thought the last PP was the end of last year.
Not sure exactly what the deal is but the last PP offering was on February 7:
Non-Brokered Private Placement
Uragold announces its intention to complete a non-brokered private placement ("The Placement") of up to an aggregate of 5,850,000 units ("Unit") at $0.06 per Unit for gross proceeds of up to $351,000. Each Unit being comprised of 1 common share and 1/2 common share purchase warrant ("Warrants") of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement.
Then on March they announced the closing of the first "tranche" of the PP:
MONTREAL, QUEBEC--(Marketwire - Mar 14, 2013) - Uragold Bay Resources Inc. ("Uragold") (TSX VENTURE:UBR) is pleased to announce that it has closed a first tranche of its non-brokered private placement ("The Placement") of 1,970,000 units ("Unit") at $0.06 per Unit for gross proceeds of up to $118,200. Each Unit being comprised of 1 common share and 1 common share purchase warrant ("Warrants") of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement.
But this latest PP announced makes no reference to the previous on and is for 5.85 million units just like the original one in February:
Uragold announces its intention to complete a non-brokered private placement ("The Placement") of up to an aggregate of 5,850,000 units ("Unit") at $0.06 per Unit for gross proceeds of up to $351,000. Each Unit being comprised of 1 common share and 1 common share purchase warrant ("Warrants") of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement.
My guess is that they didn't have enough takers in Feb. and March, but with the news yesterday they're hoping that they get more participation.
My question still remains: If they are on the verge of securing a multi-million dollar loan, why do they need to dilute us out 11.7 million shares or around 25% in order to get $351k initially and anoter585k later if the stock price exceeds 10 cents and the warrants are exercised.
So, either it's not a shareholder friendly move IMO, or they are not close to securing the several million dollar loan to start mining Beauce.
Uragold announces its intention to complete a non-brokered private placement ("The Placement") of up to an aggregate of 5,850,000 units ("Unit") at $0.06 per Unit for gross proceeds of up to $351,000. Each Unit being comprised of 1 common share and 1 common share purchase warrant ("Warrants") of the Company. Each Warrant will entitle the holder thereof to purchase one common share of the capital stock of the Company at an exercise price of $ 0.10 during a period of 24 months from the date of closing of the placement.