RE:RE:RE:RE:RE:RE:RE:Market cap drops to $300 million after hours..LOL! There might have been a time limit for buying back the royalty...I don't know but will find out. The bottom line remains...buying back the royalty saves a lot of money over the long term....some share dilution is an inevitable part of mine building.....we don't need a big equity component as the payback is 1 year...1 year and we own it...this is unheard of. focus on that. It means we can easily borrow what we need as the risk is extremely low to the lender. While the timing and size and nature of this raise seems unusual and ill timed it's still a net benefit over time and allows for more drill holes while we go through permitting and financing.
It would have looked worse had we done an equity raise to buy back the royalty and then another flow through to fund some additional drilling.
I'll talk to the company and get their take on this....they should have included an explanation and rationale in the press release at a minimum
Doesn't change anything for me....I'll continue to build my stake in the company over time