RE: Looking Under the Hood Just my opinion .. do your own due diligence. Not investment advice.
The finder's fee of 8.5% is rreasonable...past financings for MTO had a 7 - 7.5% fee attached ...with the 8.5% fee in this junior gold environment? ie. liquidity is running thin, stock prices crushed...no one wants to touch mining juniors these days...I can live with the extra 1%.
As for the share issuance...With commercial production and cash flow just around the corner, there may not be a need for a need for any more stock financing...I still believe there was some politics involved....both Marquest Capital Markets and Casimir Capital Ltd have been financing MTO and this relationship needs a "give and take" from both sides. Once shares sky-rocket all will be forgiven and forgot.
No doubt losing money was not part of the business plan:
December 27, 2012 – Val d’Or, Québec, Canada: Metanor Resources Inc. (“Metanor”) (TSX-V: MTO) has completed the private placement of 11,011,162 flow-through shares (the “Shares”) priced at $0.24 each, for gross proceeds of $2,642,678 (the “Private Placement”). The Shares issued are subject to a 4 month and one day hold period. The proceeds will be used for exploration work on Metanor’s Quebec properties.
Marquest Capital Markets and Casimir Capital Ltd., both acted as agents in the Private Placement and received a commission equal to 7.0% of the gross proceeds.
and,
VAL-D'OR, QC, May 17 /CNW Telbec/ - Metanor Resources Inc. ("Metanor" orthe "Company") (TSX-V: MTO) is pleased to announce that it completed yesterday(May, 16) its previously announced private placement, receiving subscriptionsfor a total of 18,750,000 Units at a price of C$0.80 each (the "Units") fortotal gross proceeds of C$15,000,000 (the "Offering"). Each Unit is composedof a common share and one half of one common share purchase warrant. One wholeWarrant will allow its holder to purchase an additional common share, at anexercise price of $1.00, for a period of 60 months following the Closing Date. This Offering was completed through a syndicate of agents led byCanaccord Adams and including Industrial Alliance Securities Inc. and RaymondJames Ltd. Casimir Capital LP also acted as US Agent in the context of theOffering (globally, the "Agents"). The Agents received a cash commission of 7.5% of the gross proceeds fromthe Offering as well as broker warrants allowing them to purchase a number ofcommon shares equal to 7.5% of the number of units sold as part of theOffering (the "Broker Warrants"). Each Broker Warrant will entitle the Agentto purchase one common share of the Company at an exercise price of $0.80, fora period of 24 months following the Closing Date.
GLTA