RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:On the magnesium projectMDJ - Your point is valid. The fact that there are so few outstanding shares is a double edge sword. Due to limited amount of shareholders when people want to sell shares will drop quickly just as it will do the reverse when trying to get back in. Unfortunately, no real news for over a year takes its toll.
I know Robin keep hinting they would not issue more shares, but I am not sure that was realistic and damaging if you can't do a deal trying to finance the whole project. Personally, they missed the boat in raising at least another $60 Million when they could have gone to the maket with a new share issue or bought deal that would have been around $8 after the deal with GFSC was done. The plant would be half completed by now.
As to another comment I saw today about how much of a surprise it was for Robin being removed, it was something he had been fighting off for a year and why Love was not going to Saskatoon. Well it did not work out as he hoped and not raising the remaining funds when they could may have had something to do with it.
Now given the price GFSC paid even when you add the additional shares they will get in 2016 putting their purchase price around $7.75, I do not think their idiots. They recognise the value in being a controlling shareholder and do not expect them to give it away diluting their position. They were prepared to put up another $15 million to maintain their 20% position. However, you have to do the best deal the market will bear. I'm hoping it will not be more than 8 million shares.
Will it take 2 or more partners or can they do it with one depends on how far over an additional $100 Million they can get and if the remaining production is sold. At that point, as long as they do not run into too many problems they should be home free to eventually generating $260 millon per year at $400 pmt. So while cash is king, cashflow "supreme". Something that should take 30 months give or take depending on capacity and how quickly they can get product out the door.