Bottom fishing John Kaiser VGZTMR: I understand a company just sold 8M shares of Midas. What was behind that?
JK: That was Vista Gold Corp. (VGZ:NYSE.MKT; VGZ:TSX). The company today trades around $0.37/share. It was $14 in 2005. It raised about $25M at the $3/share level in 2012 and spends about $3–4M per year on overhead. The Midas shares that it held were acquired by spinning out the Stibnite project into the public company that became Midas Gold.
Vista sold 15M shares last year to raise money to keep its operations afloat, and it sold another 8M shares this year at an even lower price to raise money to keep its overhead funded. It has another 7M shares to go in six months, which the market will likely also have to eat because Vista’s own projects really are in the same boat as all the other junior companies with advanced projects that do not work very well at the current gold price.
https://ceo.ca/2015/05/06/survival-guide-for-the-mother-of-all-bear-markets-from-veteran-bottomfisher-john-kaiser/