OTCPK:MEAOD - Post by User
Comment by
JRaffleson Oct 28, 2015 12:45pm
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Post# 24234937
RE:RE:RE:Order filled
RE:RE:RE:Order filled
If Metanor needed to raise $20,000,000 for mine development today, the share issue route at a price of 5c would be a 400m share dilution.
The choice was similar in 2011, either dilute shareholders out of existence, or give 20% of gold output for the mine capital.
Therefore, the choice today would be, either lose 50% in dilution, or give 20% of output for the £20m capital and get a $500 an ounce kickback.
In the circumstances of our share price, we are far weaker today, than in 2011, when the SP was over $0.40.
The problem is that since managment has so little to lose themselves, there is every incentive fo rthem to grow the company for the benefit of new investors, who would probably carry the directors shoulder high for bringing them in on the backs of existing shareholders.
The problem is that the next batch of investors coud be aldo shafted and only the directors know the time to get invested ....... which does not seem to be today.