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Bullboard - Stock Discussion Forum Signal Gold Inc T.SGNL

Alternate Symbol(s):  SGNLF

Signal Gold Inc. is a Canada-based gold development company. The Company is engaged in advancing the wholly owned Goldboro Project in the Canadian mining jurisdiction of Nova Scotia. The Goldboro Project is an advanced exploration and gold development project located approximately 175 kilometers (km) northeast of the city of Halifax, 60 km southeast of the town of Antigonish, and 1.6 km north... see more

TSX:SGNL - Post Discussion

Signal Gold Inc > Why now?
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Post by longagau2 on Apr 29, 2021 10:18am

Why now?

Actually, I can't seem to come up with a scenario in which it makes any sense to the current shareholders or to the company to offer these flow through shares before the PEA is released. Anyone got a good reason? I hope it comes out with time.
Comment by Rogg47 on Apr 29, 2021 10:29am
Unless the last quarter (and after) was a disaster, if we're still cashflow positive and many millions in the bank, nope there's no valuable reason to this financing.... We'll see with the FInancials but with the "infos" we have as of today, can't get it.... And buyers aren't showing up so for, market isn't impressed with that call. After all these years in that ...more  
Comment by GoldNHill on Apr 29, 2021 10:30am
As I mentoned...they seem to be in a hurry to do something BIG that they hand not already had planned for using existing cash.  If they wait 6 weeks then do the raise (post PEA)...that is 6 weeks of time not actively persuing this BIG something (what ever that is...Drilling a Tllt Cove discovery I hope)...so waiting 6 weeks then closing after that...several more weeks before cash is in hand. ...more  
Comment by longagau2 on Apr 29, 2021 10:51am
I hope you're right. Big discovery at Tilt Cove or drilling the heck out of dolliver mountain and LSH I guess are the good possibilities, especially if there is imminent takeover threat and they want to drive up the value. But with what seems to be long delays at the labs for processing samples, what's the rush. And why not include the target of the exploration plan in the release, or ...more  
Comment by DoumDiDoum on Apr 29, 2021 11:04am
We can also add the fact that they want to have institutions on board and without the warrants incitive in their financing, it might be a bit tough to negociate.  But I stick with GoldNHill and think that they needed the ca$h quickly for exploration and wanted to keep their $14M for what is to come after the PEA and PFS is released (promotion, security, M&A and the like).  Better ...more  
Comment by DoumDiDoum on Apr 29, 2021 1:40pm
I read the NR again and they are using a pretty general reasoning for the usage of the money: The gross proceeds from the Offering will be used by the Company to incur eligible "Canadian exploration expenses" that will qualify as "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) (the "Qualifying Expenditures") related ...more  
Comment by 5er on Apr 29, 2021 1:42pm
Makes me wonder why the share price was being pressured down?  hmmm,  purchase of flow through shares to be negotiate, lets get the price down before purchasing,  hmmm
Comment by SgtFriday on Apr 29, 2021 3:55pm
Any accountants on this board? Tried to reserch online, I think it has something to do with tax law? If I read and understood correctly, we might be trying to speed up drilling while taking advantage of tax breaks allowed for flow through shares. I think if we use our money, its 100% burn rate, but if we use FTS money we get some sort of tax credit, thereby costing us less. But I'm not sure, a ...more  
Comment by 5er on Apr 29, 2021 4:38pm
I believe it is the purchaser who gets the tax break on flow through shares but the company then has to use the funds for exploration.
Comment by ggrellette on Apr 29, 2021 4:52pm
You are absolutely correct when u say u believe it is the purchaser and yes it is the purchaser that will get the tax break.
Comment by MAKEITBACK on Apr 29, 2021 6:01pm
I think it simply means that the mpney lost in revenues has to be made up in share issuance. The flow through shares free up cash for other operating expenses. I am hoping that the reduced gold production is temporary but they did not actually say that. Might they have presented these events in a more favourable way? If so, why didn't they.  
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