Post by
victor0987 on Nov 01, 2015 8:40am
Independent Observer
130 Million FD shares issued for net proceeds of $3,760,000 Million dollars, is an act of desperation by the board & management, and just this side of insanity so as to keep the company afloat.
Management, and the board cannot be trusted, having been shown in the past of not being forthright with it's shareholders several times over.
With this in mind, it's more than likely that behind the curtain, matters are much worst at MTO, than what's being pumped in NR's to shareholders
Anyone that cannot see this has blinders on!
With the current 420 million FD shares, MTO now has 550 million FD shares outstanding!
550 million slices for every dollar of positive cash flow earned!
Being cash flow positive has not been one of MTO modus operandi.
A future PP will include at least a 10 for 1 rollback if the company is still operating.
MTO does not have enough money in the bank to continue operations ... see act of desperation above.
What needs to happen -
The anchor around MTO's neck starts with management, and ends with the gold stream agreement with Sandstorm. Sandstorm & MTO need to restructure this agreement as they did with the Aurizona Royalty. If this is not imminent, then after the guarantee $20 million of tax-free cash flow is paid, (2016), take whatever means to force their hand.
Best case scenario - Taken-out by deep pocketed producer that able to restructure stream agreement with Sandstorm.
Worst case scenario - The next MTO trading halt will be a notice of bankruptcy after operational setbacks have eroded their profitability.
Again - MTO has not enough money to continue funding operations, and will continue to string shareholders along until the mine & mill are put on care & maintenance, or is taken-out.
Comment by
LiTeOn1981 on Nov 01, 2015 8:53am
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