So bad it might be goodA week ago I posted on ceo.ca a "thinking out loud" piece that considered dilution. Namely, I calculated the number of shares that would have to be issued (at 40 cents per) under 2 scenarios - raising $250 or $150 million equity for a project capex of US$600 million.
In the first case, I figured 900 million new shares, in the second case 540 million. On top of the existing 235 or 236 million, you're talking a lot of shares.
This morning, we see an issue of about 40 million shares shares to raise a VERY MODEST C$15 million gross. Can you imagine what this deal would look like if Troilus tried to raise a lot of money???
In my opinion, this rape of existing shareholders seals the deal. There's no way Troilus will be able to finance this project. Issue the Feas. Study, spend the flo-thru dollars as required, then put this sucker on the auction block. Please.