RE:New Shares issue at $.055Dansul,
A few comments:
1. I was speculating that the FT must be for "exploration" expenditure. In fact the NR says so: "for mining expenditures on its Cadillac Break properties in Quebec."
At least, they could spend some for sending the samples that are sitting in the core shacks to the labs for assaying, since they don't much (cost: less than $100k) and perhaps do a few shallow in-fill drilling.
2. I was expecting the PP to be a bit larger, $1M is a stop-gap measure (dilution is about 3.5%, which is inconsequential). A reasonable/workable financing should be around $5M (AZX, and its shareholders, could afford take on a dilution of ~15%, but not over 50% dilution range as proposed by EO). EO's proposal would be equivalent to selling half the company for $20M). But $20 would be not be all for exploration. A significant part of the $20M say, 25% or $4M, would be for financing a good life-style of a selected few (CEO and his sidekick)...for several years.
I would not mind if the FT is over-subcribed and they could raise at least $2M (to give AZX a bit more flexibility).
GH
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Read more at https://www.stockhouse.com/companies/bullboard?symbol=v.azx&postid=28604538#iaajz7xqiaWiOg2w.99
Dansul wrote: | | | TSXV-Listed Alexandria Minerals to Raise up to $1 Mln in Private Placement Flow Through Financing | | 2018-09-12 10:49:47 AM ET (MT Newswires) | | | |
| | | | 10:49 AM EDT, 09/12/2018 (MT Newswires) -- Alexandria Minerals (AZX.V) said Wednesday that it will issue up to 18.2 million flow-through common shares in non-brokered private placement at $0.055 per share, for gross proceeds of up to $1 million. Proceeds will be used o incur Canadian exploration expenses that are flow-through mining expenditures on its Cadillac Break properties in Quebec. GLTA,
Dan | |