NeXGold Mining Corp V.NEXG

Financing of the first mine : dilution !?

[andre171]

For the financing of the first mine to be built, the current share price remains very unfavorable. Even if only CAD 100 million were to be financed by equity, this would still represent a dilution of almost 100%, which would mean that small shareholders would lose half their stake in NEXG, even though they have already suffered too much from successive dilutions!

[shiftyone]

Of course they will have to do a significant financing to build a mine. Likely about 100 million as you suggested.  Then they can borrow the rest at reasonable costs.  My hope is that the $25 million they have now will carry them through until they get permits for whichever mine they choose to develop first.  And in the meantime while we wait, they spend some money wisely that will

[andre171]

@ Shiftyone - 2.5, you're optimistic. That would be more than triple the current price within 2-3 years! Even with permits and some good news, that sounds like a lot! 

[shiftyone]

Yes it is optimistic.  But the pendulum always swings tfrom underpriced to overpriced.  It seems underpriced if they are actually going to get into producing 100 000 ounces a year at either of their properties. What I play with I call it for stocks, I usually want the possiblity of  significant gains over a short period.  That of course depends on the appetite for gold, for