GLOBAL MINERALS LTD NEW GMFLF

RE:Capital raising implications

[truespeculator07]

In my opinion this is still a solid stock. what has changed in this company in the last 2 years. They still have about 28 million ounces of silver (Meas+ind+inf) along with copper and antimony. They have lot of mine infrastructure in place, de-watering complete and being a historic silver producing mine they have veins opening in many directions increasing the possibility of silver find in many directions and slovakia is not a bad place to do business. The only thing that has changed in investor sentiment and everyone is now bearish and people have become risk averse and don't want juniors especially. The crowd always chases sentiment and once this sentiment reverses (which i firmly believe it will) the crowd will join again.

Regarding funding I believe they would not go for full scale dilution, they can do funding in multiple stages to amortize against share price. If investor demand is high then they can do at a multiple higher than current share price or they can do a warrent mechanism where the investor has an option to buy share at a certain date at a certain price. That guarantees against immediate dilution. But we have to live with that either way. The only assett the junior has is the resource inside the ground. Until they can extract it and sell it out they can't make any money and to extract it they need money. That is the irony. The hope is market turns in the next year or so that the share price appreciates for them to do healthy funding. But I firmly believe CEO is a smart and experienced guy and they have got Sprott group as one of the funders I believe. They are deep pocketed guys. This one will definitely survive this current onslaught and wont go bust. After that hope for the best :-)