Massive Dilution Hello Pete,
I have to totally agree with you that we have been through a massive dilution and that is the one reason we are at the low teen share price. I believe now dilution is done and over with and the off take agreement will be in place probably in the short term now which will give the company the ability to borrow money, hence the deal announced a few months ago with BNP Paribas. I have to disagree slightly with you when you say that EMR has no interest in keeping the share price high. By increasing the share counts they were diluting themselves as well because they have financed a lot of money at average prices around the $0.40 per share, So they are under water like most of us long term holders. When I look at the 12% interest rate, I honestly think it is not a bad rate at all since the only collateral at the beginning or start up of a mine is the land leases granted to the company. So high risk ventures require higher interest but as we are moving forward, we now have a mining permit fully approved complete with full feasability study and hopefully an off take agreement will be in place shortly which all adds up to de-risk the project and it makes it easier to finance the project at lower rate of financing. Even after
De-Risking the project, I would be surprised if we could find financing below 9% interest but i am not a banker.
I have no crystal ball but I think dilution is all done. Thank you Pete for sharing a very constructive post and feel free to comment again on how i see things unfolding. I am long on this one and of course, I have all the reasons in the world to see the stock price higher. I think all the ingredients are here to see a much, much higher price on the long term but i have been wrong before even though this is not my first Rodeo. Take care and enjoy the day.
Regards,
Fearlessgg