Post by
drunk@noon on Apr 22, 2021 9:51am
swedeprof:given the financial metrics of the project
the low risk executioin, given the straight forward nature of oxide ore heap leach along with the shallow open pit extraction and low strip ratio I love this project. And I am a shareholder. But there will be further dilution when they raise cap ex for the project itself. It is just the way it is. ORE has a similar project and management bragged about having a great debt lending sheet lined up for the better part of a year before the finial project financng for the project was announced. The stockhouse BB was full of posters who claimed management had advised them theire would be no stock issued. I pointed out they were wrong. Turns out between the new shares and dillutive converibles half the cap ex was new shares. With the straight eqiuty 10% lowewr than the sp at the time. they didnt even bother doing a streaming deal to tredcce dillution. this after stating they would do what they could to keep dilution to a minimum.
the reason i want to know cap ex is any astute investor will assume 50/50 split between debt and equity for cap ex raise. Notice they issued half warrants-- if they do the same for project financing it will increase dilution even more.