Touchstone Gold in a Sound Financial PositionTouchstone Gold's recent update revealed that its existing cash will last until about the end of May 2014, and that if necessary the directors would support it after that: i.e. it's not going bust.
Whereas a deal should be concluded far earlier than that. Perhaps even imminently, as two deals are in advanced discussions.
Interim Update 20/09/2013
" ... the Directors are hopeful that one of the initiatives currently being explored may lead to a conclusion by the end of this calendar year and that two such initiatives can be accurately be described as being in "advanced discussion" stage.
The Company's current cash and equivalent resources are approximately U$250,000, with various important lease payments having been made to secure properties and also extinguish historic liabilities, and monthly costs have been reduced to approximately US$30,000 per month. The Company can confirm that should no strategic transaction be concluded non-executive Directors Bob Buchan and Ilyas Khan have indicated to the Board that they would be prepared to provide sufficient funding to enable the Company to meet its anticipated working capital obligations until new potential sources of funding are identified. ... "
https://www.touchstonegold.com/s/NewsReleases.asp?DateRange=2013/01/01...2013/12/31
Touchstone's 15th. August interim results may have given a superficially misleading impression to some readers where it said this:
" ... the Company has recorded an impairment of $13,632,773. The mineral interest was initially acquired as a result of the acquisition of Atlantis Gold Mines Corp."
Because in fact, the Atlantis deal was originally described as a merger, and was a share-based transaction, rather than for cash -
06/08/2012
" ... On completion of the Merger, Touchstone and Atlantis shareholders will respectively hold approximately 64% and 36% of the Combined Company on an undiluted basis. ... "
https://www.touchstonegold.com/s/NewsReleases.asp?DateRange=2012/01/01...2012/12/31
Similarly, the El Cinco deal was largely share-based, incolving a relatively modest cash payment -
17/10/2012 07:00 UKREG Touchstone Gold Limited Agreement to Acquire El Cinco
" ... C$1,000,000 total consideration for the Acquisition, which will be satisfied through the issue of C $750,000 of Touchstone common shares (the "New Shares") and the issue to the Vendor of a C$250,000 principal amount convertible unsecured promissory note (the "Note"). ... "
https://www.touchstonegold.com/s/NewsReleases.asp?DateRange=2012/01/01...2012/12/31
The impairment is an accounting protocol, but relatively little cash was expended on the above deals.
And bearing in mind that Touchstone's share price was far higher in 2012, then the dilution wasn't too onerous.