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Mega Uranium Ltd T.MGA

Alternate Symbol(s):  MGAFF

Mega Uranium Ltd. is a Canada-based mineral exploration and development company. The Company is focused on the acquisition and exploration of uranium prospective properties. It has exploration stage mineral resource properties in Queensland and Western Australia and investments in uranium-focused companies. It also holds interests in junior and medium-sized uranium exploration and development companies, royalty and diversified uranium holding companies, and its own exploration and development projects. The Company’s project is Maureen Uranium-Molybdenum Project, which is located approximately 32 Kilometer (km) away from the small regional hub of Georgetown, located in Northern Queensland, Australia. Its subsidiaries include Maple Resources Inc.; Uranium Mineral Ventures Inc., Mega Georgetown Pty Ltd., Mega Hindmarsh Holdings Pty Ltd., Mega Redport Holdings Pty Ltd., Monster Copper Corporation., Nu Energy Uranium Corporation, and Northern Lorena Resources Ltd.


TSX:MGA - Post by User

Bullboard Posts
Comment by TheRajon Jan 10, 2017 5:26am
129 Views
Post# 25686881

RE:The Raj

RE:The Raj
I dodn't thnik I exageratedon any topic but only time will tell if I was overly optimistic about any point I made.

Now to discuss what could posibly be a negative (and i'm not being a basher here now) ... it's almost MGA's yearly time to obtain cash for their "NEEDED TO PAY FOR THEIR BUSINESS OPERATION" so says Mr Patricio... this brings up the question  - How will they do it this time?

MGA was succesful in 2015 in raising cash through a Private Placement (in which Mr Patricio boutgh into himself). But in 2016 Mr Patrico decided to sell some of the NXE equity (2M shares at 50 cents/sh for a total of $1 million) Knowing fully well this time that NXE will be releasing mosre positive exploration results, and also knowing that Toro will soon get the green light to move ahaead with constructing/developing the Wiluna mine, Mr Patricios would be very silly to sell any of the two equity shares because they will both be increasing in value very soon once again. I guess this fact alone should be sufficient to get the same 2015 PP investor to give further money ... after all the 2015 PP deal is coming to a close in the coming month with the warrants allowing for buying shares at 14 cents .... job well done since the current SP is hovering near 16 cents/sh. If Mr Patricio is able to convince and deliver on his promises then he should easily be able to raise money by doing another PP instead of selling more equity like he did last year, which I thought was the worst decision ever made by him ... but I guess it's a fine line between deciding to dilute share structure, or to sacrifice equity ... it's a difficult balancing game to manage if you're the CEO of MGA

In any case it will be interesting to see what Mr Patricio decides to do ... personally I hope he and the rest of the board members chose to bight the bullet - sacrifice alittle for the sake of the shareholders, and decide to delay any money raising plan 'til later this Summer. I think it would be safer and more economically sound for everyones sake if they wait 'til then because that's when the mining sector cools off for a while.
Bullboard Posts