RE:RE:RE:RE:RE:RE:RE:On the magnesium projectNo, there are a lot of reasons and it starts at the beginning.
1) Raising money is about creating value. Reason why we see stock rise then crash as the reality of raising capital do not come through.
2) The initial value was predicated on them being in production today. Has not happened.
3) This is about market and execution. Phinney in 2011 said they would start building in 2012 when they did not have even plans or money. Well it is 2014 and they are still trying to put the balance of the money together without which nothing will happen. Market looks at this and reacts.
4) I am familiar with the points of the AGM and an NCIB is only a temporary fix. Once depleated the maket will take over.
5) Money makes the world go round. To think one is going to raise capital without issiung shares is not realistic. I do not think the GFSC will do a deal at any cost and why it another reason it is taking as long as it is.
6) They are well advanced and having GFSC as a partner is a good thing. But like any prudent company and all creditors and need to know they have all the money. Right now they only have half the product sold and GFSC will not put more money at risk than is considered prudent.
There are a lot of moving parts and these agreement can take a year. Then where does one dedicate resources. Easier said than done.
Cash is King and until one gets to productions and generate cashflow one has to be careful.
Great example is Canadian Lithium RBI who after numerous delays in trying to get to full production, with additional costs and new share issues to raise capital have filed for Bankrupcy Protections. With CFSC as a shareholder there is less of a chance for this to happen, but this is why most companies looking to raise capital fail.