American Bonanza Gold Corp ABGFF

RE:??? Good news and bad news....

[bizwiz]

It just seems so aberrant to so drastically dilute the shareholder ownership position of current shareholders when they are producing and are expected to sufficiently produce to be able to pay outstanding debts that I'm wondering if such a measure has another purpose than to assure a paltry inflow of capital. Mind you, while they may have added such a measure to be prepared once there is an improvement in price, it is stated in the proxy that they are expecting to issue packages (shers and warrents) at 10 cents per share...

Such a measure just made me think twice about the viability of such a corporation since, if they were expecting a sufficient inflow of capital from current production they just wouldn't be doing this. But then some friendly suitors might expect a windfall... With formal reserves (without considering the most recent exploration results ) alluding to a mine lifespan of around 7 years (despite what old reports may signal in terms of reserves)  which, at the current price of gold and with due knowledge of current reserves, makes the current undertaking sufficiently profitable, I'm wondering what the future holds once additional drilling results further confirm what the old reports alluded towards.

We obviously aren't going to get another kind of Busang (which strangely enough was an immediately neighbor of the fabulous Porgera deposit  ....)