RE:RE:RE:RE:RE:BMO salehalcro wrote:
The latest punters (first and second tranche of the 50-cent PP), do you figure that they'd fork out another $2,376,600 to add another 11,883,000 shares to their pile? And the trade payables, who are already out $1.5 million and who have seen the value of their proposed paper tumble at today's price by $105,000...you think that they'll cough up another $600,000?
IMO, without the hype/hope associated with the latest financing, there'll be a drastic weakening in the share price without some verified good news (spike in the price of gold, an announcement that more than 30 ounces of gold has been poured).
Good points. But by making the rights transferrable, those not interested could get a few cents back from the dilution -- less the sting in a fair way. But really, I have no idea what an investor in BGM is thinking or expecting? Perhaps a spike in POG?
Personally, I expect BGM will delay the gold pour until they have ground enough ore to produce more than the gold due to Sprott this year. Would be a powerful message to say, paying back Sprott early on 1st installment.... Of course, I estimate that after that first big pour, funds to do more work would be tight. But maybe the revised resource estimates would be available and would be a good backdrop to the rights offering. A bump in resource won't do much IMO when POG is falling but it is a natural play that is already in motion.
IMO, raising more money is BGM's only real play until POG trend reverses. And next PP will be sustantially lower than present attempt IMO. So, I still think FC, go for the rights offering. Just do it!!!