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Bullboard - Stock Discussion Forum Alaska Energy Metals Corp V.AEMC

Alternate Symbol(s):  AKEMF

Alaska Energy Metals Corporation is focused on delineating and developing the large-scale, bulk tonnage, polymetallic Eureka deposit containing nickel, copper, cobalt, chromium, iron, platinum, palladium, and gold. The Company’s flagship project, Nikolai, is located about 80 kilometers (km) south of the town of Delta Junction, on the southern flank of the Alaska Range. The Nikolai project hosts... see more

TSXV:AEMC - Post Discussion

Alaska Energy Metals Corp > FUNDING PROBLEM?
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Post by geolteacher on Apr 19, 2024 12:52pm

FUNDING PROBLEM?

I noticed a SCARY discrepancy about funding in the current Investor Presentation:
  • slide 8 says $1.4M cash on hand.
  • slide 17 headlines '2024 Exploration Strategy ($10M)' for the Nikolai project.
Doing some rough math, it looks to me like they'd be selling 50M shares at current price, to raise $10M.
Current float is about 86M shares, so that'd be like a 70% (?) dilution.

Unless (even if?) there's a strategic investor, the financing terms are likely to be poor.
I could see the SP dropping to $0.10 during the year.

Glencore owns 9.9%, so they likely won't buy any more.

Investor presentation says 60% is held by "new investors". I guess that small investors. That's a LOT of shares to be sold in dissappointment as we see our losses build. 

I think the shareprice will begin to trend back upward in 1H 2025, after 2024 drill/assay results, metallurgy and updated MRE.
Comment by AxeCap on Apr 23, 2024 3:19pm
The NR from yesterday leaves a whole lot of dilution possibility.  Could be a very long term play and chance to get in at much lower SP. Hope the copper amounts increase to help with the low nickel prices that may last a couple more years.
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