RE:RE:Tighten seatbelt for the $4 million rideI'm not sure how you interpreted dilution into this domace. It is a loan facility. Effectively, it is using shares as collateral, but not dilution. Pay it off, no dilution. Being a loan facility, it also means they only pay interest on what is used, when it is used. So if the share price of MXI goes up to .50, then MXI can raise capital on the market at .50 and pay off any outstanding balance. There is absolutely no better possible financing out there on the market anywhere. Any drilling company would drool over a deal like this.
Secondly, I have no idea how you figure MXI owes $4million on current drilling. The whole drill program for 2016 was $3.2 million and they are responsible for only half of that.....so the full cost of 2016 drilling is $1.6 million max. If you recall, MXI recently raised $3.6 million to pay 2015 drilling of $1.8 million and whatever of 2016 to date of which the grand total would be $1.6 million. When they raised the capital in May, they were half way through the 2016 program so they have probably paid half of 2016 to date with less than $1million still owed in 2016. This loan facility allows them to finance their share of a new $6-7million drilling program (see my past post).