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Eagle Hill Exploration Corporation V.EAG



TSXV:EAG - Post by User

Post by Goldflowon Jun 28, 2013 11:43am
366 Views
Post# 21579518

Private Placement, so... more dilution?

Private Placement, so... more dilution?With $12 million private placement with Dundee and Southern Arc at 0.075/share, doesn't that mean there will be crazy dilution? How is this a good thing. Sure we do get 100% of the property, but Dundee and Southern Arc now own 26% of it each (Total of 52%) of Eagle Hill - this means any of them could propose a hostile takeover, due to owning so much, and it wouldn't be hard for them to do that. We already have approximately 187,000,000 shares, now with another $12 million at 0.075/share, another 160,000,000 shares will be added, which should put us to a total amount of 347,000,000 shares outstanding. That's a pretty big number for a penny stock explorer that isn't close to production. And we gave 5 million of the 12 million to Noront already for the agreement on the Windfall Lake property, which leaves us with a measly 7 million to start drilling in September. That will last us maybe half a year to a year, depending on how slow we go, and then what? More dilution? If Dundee and Southern Arc wanted to show more confidence, they should've bought shares at a higher price, but at this current price we've been given, I'm not impressed or happy about anything. Sure we're up today, but as price of gold sinks below 1100, and Eagle Hill depletes its cash drilling, we will probably be back to the 7 cent range.
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