RE:Initial observations - financingProd5,
Some comments:
1. Gundy and Sprott are big names and a good combination to bring in some visibility to AZX. Eric O. does not seem to be a mover/shaker/gambler . He's too much of a conventional geo who does not want to venture far from his comfort zone. In this business, making big money would require the bravery of spending big bucks, and of course some luck on the side. With some more money coming in, I can see that more drills will arrive to start making Swiss cheese out of Orenada.
Additional money may come in from divesting the fringe properties in other provinces, such WIM and Hudvam (they could bring in quite a few $M). Let's see if Gundy can do something here. Also, Sprott already has 8.5% of AZX from the last financing. With this latest investment from Eric S. the total Sprott +Eric S would be over 10% and they would become insiders, with perhaps a seat at the BoD? ......Sprott + Eric S. are in this to make money...and they have become king-maker.
2. Buying shares on the open market to reach his (Eric) quota? with $2M investment @ 0.06/s he would have 33.3Ms = 6.7% OS and 33.3 wts @ 0.09. So, what kind of quota we are talking about. Of course, his friends would have the rest of the shares and wts from the $2.5M package, and they would be part of this insider group as well.
3. Wts: For this financing, Eric S. has 33.3 M wts. If he pays $3 M he would get for another 6.7%.
In addition, there are currently 63M wts (@ 0.08? another $5M coming in to AZX Treasury for over 12.6%OS). If we add all those up, Sprott + Eric + friends may end up with 8.5 + 6.7 + 6.7 + 1.6 +1.6 + 12% = ~ 37.7% (which is way over 20% limit, noting that I have used 500M OS throughout this rough estimate). The point here is that Sprott + Eric S. and friends seem to be in control of this whole thing.
4. Agree with that, Orenada = Swiss cheese (not sure if Owens will steer the ship).
5. AZX = consolidator? May be.However, it may be easier to stage a merger with either ICG or PRB, so you don't have to worry about AZX share roll-back. Share conversion would sort out this issue. Also, It would be difficult to change people behaviour (i.e., it would be easier to replace people, like what they did at ER). So, it would not be a surprise to see changes in the top echelon (golden parachutes ready to be deployed). In the end, Sprott and Eric S. would sell AZX package to a producer (like AEM).
PS: ~6.3M shares traded after 2pm with some big blocks from 0.5M to almost 2Ms @ over $0.075/s. Just wondering who were the buyers.
GH