Corazon Mining Ltd T.CZN

Why dilution and not debt financing?

[minedriller]

From reading the RCF input "Early Warning Disclosure" in the NR they state they have the right to further equity financing (dilution) of NZC. If they are so committed to financing the mine then why not just provide initial debt financing to be paid back at favourable terms which would get the project started and say come fund me to other banks and hedges? It's a fast less hassle win win win strategy and highly profitable. Why? I have a growing sneaking feeling that RCF's intensions are not benign but malevolent, and they are simply doing what hedge funds do and that is stress assets to purchase on fire sale terms albeit at a pace which provides maximum damage for maximum turn around. Having said that, such a strategy while being formulaic to hedge funds may not work out for them here, as the metal is still in the ground no matter what (which is only marketable topside) and Capex/Opex is slowly disintegrating and burning cash daily, share base is bloated and unwieldy and they are not in the business of mining. So all-round unless they have a buyer lined up already (which I highly doubt, as many financings have been completed ALREADY over the last few months of projects nowhere near as potentially profitable as Prairie Creek; so they don't) then their corporate tunnel vision and group think is going to drag them down by the snout.