GREY:ALXDF - Post by User
Comment by
goldopportunityon Sep 12, 2018 1:26pm
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Post# 28606125
RE:RE:New Shares issue at $.055
RE:RE:New Shares issue at $.055Good analysis GH -- great to see you back posting on the alexandria board. Methinks that may prove to be a very astute point about the $1M pp being a stop gap. Yup, woudn't be surprised if it's over-subscribed. All in all, the market seemed to like this am's pr. Jmvho.
goldopp
GH wrote:
"Dansul,
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