I-80 Gold Corp T.IAU

Well there it is

[NineLives]

We couldn't figure out that big short 11 million shares plus, well I bet my bottom dollar it had to do with this sale by EQX (a company I don't trust whatsoever). EQX stated they won't sell anymore IAU, sure anyone who believes that needs their head examined. Always thought the one fly in the ointment was EQX holding all those shares and now the chickens have come home to roost. They sure must have been desperate to dump shares at $2.76 which probably when negotiations started with this syndicate would have been 25% below the current share price.
My question is, why didn't EQX just feed those shares into the market nice and slow instead of dumping at a huge discount  ?? And who is this syndicate of underwriters ? 

Such a badly orchestrated deal. Fuming.

[metalhead666]

There's no industry full of scum more than junior miners and the predator banks that enable them to constantly harvest money from the masses.  One more reason why I never think of them as "investments" only "trades".....you build a position, catch a wave, sell it and never look back. I totally agree with you that the short sales and this dump are related.

[NineLives]

None of what EQX has done changes my long term view on IAU and I'll continue to hold. Some Gold stocks are for trading, some like GB are holders and there in the portfolio as a subsequent takeover candidate. Those are the ones that make an investor wealthy. But my displeasure at this latest deal which IAU has no control over I believe is warranted. Further investigation is required. JMHO

[AlwaysLong683]

Actually, the relationship between EQX and IAU goes all the way back to April 2021. with further EQX investment in IAU as announced December 10, 2021 which I suspect made EQX an IAU insider due to its 20%+ ownership in IAU. EQX was a major purchaser of shares when IAU was looking to raise money.. Seems like EQX wanted a big stake in IAU, perhaps because they believed the shares would be worth a

[AlwaysLong683]

Oops, wrong link to the April 2021 press release. Here it is

[AlwaysLong683]

Wow, messed up EQX press release link too. Here's that link

[NineLives]

Sorry not a lot of time on my hands for an in-depth reply. Yep I know the relationship inside out. And EQX have stated why they need this money. BUT: The questions raised by this sale are 1.) It's way below the 30 day avg, 2). Who is involved with this syndicate is it completely arms length or not.  3.) Did this pending sale of shares have anything to do with the large short position. If

[AlwaysLong683]

1) If you want underwriters to take that many shares off your hands, you will have to give them a discount enticing enough to do so. It's a negotiation. The underwriters need to make enough money off the deal that would satisfy them as they attempt to sell the shares they purchased from EQX to other buyers. This transaction involves an outright purchase of IAU shares by the underwriters where

[RocksandStuff]

EQX needs the money if you look at their most recent financials. Hard rock is a huge capex spend and their others mines aren’t doing great. They need cash to finish the Hardrock build.