Signal Gold Inc T.SGNL

What about royalty or streaming?

[longagau2]

I've heard a lot of discussion about debt and equity financing for goldboro. If Point Rousse pumps out 30 million per year profits (as is very possible if they are putting the higher grade material shown at argyle and stoger tight through the mill) and these can be used for funding goldboro development in combination with debt, that of course would be ideal. We do have an advantage in that the big financing will not be needed right away and anx can wait a bit before going for financing. This would hopefully allow for the share price to be up higher before equity dilution is contemplated. However, I have not seen much discussion on royalties or streaming. It seems like it would be a good idea given goldboros life of mine should be in decades and costs low. What are the advantages and disadvantages of royalties or streaming for anx? Is there something that I am missing for why this is not being talked about? Thanks.

[GrumpyInvestor]

The problem with royalties and streaming is that you are sacrificing a part of future production at a discounted price. In a way, it's another form of "dilution" for current shareholders. When you can raise money without having to resort to that "last resort" type of financing, the shareholders are usually better off in the end. Besides that, it would also make the company

[longagau2]

Thanks Grumpyinvestor. I just wonder if the unreasonably low share price persists when it comes time to source financing, if royalties or streaming would offer a better alternative to equity to fund goldboro. Hopefully share price will align more with fundamentals soon and we won't have to worry about this.