Canada Nickel Company Inc V.CNC

dilution for CAPEX funding

[ontheride]

Hey everyone - new mining investor here. Excited for the "Green Gold" market. Question for the more experinced mining invesors: how does dilution work in mining stocks in realtions with CAPEX funding?

[StockGuru454]

If the company raises some new capital, the shareholder ownership percentage gets diluted. The amount the company raises and the per-share price will dictate the amount of the dilution.

[idlefreebird]

StockGuru well said...my take is for the value we have in all minerals in the ground we wil be able to afford a little dilution...your talking major buyout here and i will start at 1 billion on the low side.....glta

[IgnacioCashmere]

A firm has more than one option to raise CAPEX through share dilution. They can attract institutional investors or high net worth individuals in a private placement. These are most often given at a discount or offered at market price but with a bonus of warrants at a future discount. The private placement purchasers get a special deal in return for plopping down big chunks of cash. The firm can