RE: RE: NOW THAT WE OWN THE PROPERTY Hey people
too many wrong interpretations here.
Quinto now has a 15 % undivided interest in Monster property.
Tomagold had previously 100 % of Monster but Quinto had an option to earn
50 % for 6 millions $. (and 20 % more by spending another 4 millions $)
They spent close to 1 million $.
Quinto had to finance and dilute themselves; let say at 25 cents level
it would have meant a dilution of 20,000,000 shares to get the 5 millions $ to earn their 50 %
plus at least 1 million shares for working capital (all the fees involved for a public company)
Quinto has 10,850,000 shares outstanding now.
The total shares would have been 31,850,000.
The dilution in this scenario would be 66 %
It means actual shareholders would have only 34 % to earn 50 % so to end up with 17 % of
Monster. (34% X 50% = 17%) If you add up the commissions payable (10%) on the private placement the
figure is probably close to 15 %.
Quinto had nothing but an option to earn up to 70 % by spending another 9 MM$.
Quinto had no property. Now Quinto has a 15 % undivided non dilutive interest in Monster Lake
gold discovery. Put it another way : if the initial deal had been for a doller spent you earn an interest
in the property, then by spending $800,000 Quinto would have 6.67 % ownership in Monster.
($800,000 divided by $6,000,000 equal 13,33% of 50 % in Monster = 6.67 %)
The trade gives Quinto 15 % of the Monster claims.
Now Tomagold must do the financing and dilute itself.
A 5 MM$ financing at these level would dilute actual stakeholfders of Tomagold by approx. 34%.
Do you get it ? 34 % plus 15 % given to Quinto is about the same as the option initially given to Quinto.
The big difference is the market risks and the willingness of Grondin to get the effective control on the
property. He can manages the way he wants. It is his show.
Quinto got a premium and does not have to suffer dilution
because of Tomagold financings.
Now lets look at the near future;
Grondin wants to drill Monster and he wants to produce a 43-101 resource estimate on Monster
toward the end of the year.
I am bullish on both.
Leverage is on Quinto's side