Red Eagle Mining Corp RDEMF

RE:RE:RE:Yes wileycyte

[wiseyoungman]

Agree completely lookingdeeper01. You also made a great post last week. 

One other point for those who remain. Prior to the news today, this Company was in a bad situation with lack of cash, upcoming debt repayments and horrendous working capital. I also agree that the new economics simply mean higher costs per ounce. How much, you knows. This was always a small mine and only high profitabllity made it wortthwhile. No more. Certainly not for at least 6-9 months. But by that time, existing retail shareholders will own a fraction of what they owned last Friday.

The rights offering can potentially add another 130M shares. This Company owes a lot of debt to the mine builders and various debt covenants. The next financing wil be sometype of convertible debt financing which normally buries a company. The debt holders own the day. The gold price based on every analyst in the universe is projected to be between $1200 to $1450 US over the next few years. Forget about that. 

Finally look for Q2 financial statements to have a going concern note disclosure as Note 1 to the f/s. That must be included if the Company does not have sufficient cash to operate for one year without a need for financing. WIthout the rights offering, the Company could not operate for 12 months. It is a going concern.

As I stated earlier, this sucks but I am glad I am out and will live to fight another day. Those who choose to remain, do so, however know these types of situations almost always result in retail investors being wiped out. GLTA