GREY:NEVDQ - Post by User
Post by
westcoast1000on Nov 17, 2021 12:04pm
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Post# 34136598
what is the implication of all this concern about finance
what is the implication of all this concern about financeIt is clear NCU needed cash to continue to operate underground, It is clear they improved their balanace sheet markedly with the latest share offering. Maybe they will need more cash in 6 months or so if they cannot get cash flow going from the mine. All is obvious.
patchh and others are raising wild scenarios about impaired assets and bankrupting the company, presumabily so that Pala can take over the company and bleed everyone of their shares at a few pennies per share. There is no other end game that would provide any benefit to Pala. Instead of essentially bankrupting the company, they are buying more shares.
Clearly they avoided putting up their own $41 million to achieve the kfw financing restructuring. Instead of their money it came from the market. That hurt us all, and allowed them to lower their share price markedly. But their share price is still likely above $2 a share and you can buy shares today for .735. It also allowed the mine to continue to develop, work out the kinks and produce copper.
Here is a very important point. A take private move under BC securities law requires a at least a majority vote of the minority shareholders in every share class to approve such a change. It might require a 2/3 vote but I cannot find the documentation right now.