West Red Lake Gold Mines Ltd V.WRLG

Quite the chart lately….

[Fredfudpucker00]

Look........1D 

5D 

1M 

3M 

6M 

1Y 

3Y 

5Y 

10Y 

20Y 

DAILY 

WEEKLY 

MONTHLY 

Area  

Friday, Feb 09, 2024

Last	Volume
0.67	107.42k

Prev. Close

0.680

Open

0.670

Last

0.670

Volume

1.31M

$ Chg

-0.01

% Chg

-1.49

YTD % Chg

-17.07

High

0.680

Low

0.660

Bid

0.670

Bid Size

89,500

Ask

0.690

Ask Size

17,500

Year High

1.04

Year Low

0.420

Exchange

 

[Fredfudpucker00]

Why aren't shareholders complaining?

[Consvestor]

The only reason it is down is because of the new share issue, keeping the price substantially under fair market value.  They should hopefully now have enough cash to restart the mine.  I'm not complaining because I'm too busy buying mores shares!

[Fredfudpucker00]

Why should the $30 million share issue price be so much lower than the market price? Also with the gold  linked notes it seems the holders get all the upside to the price of gold ,and the company gets little upside.

[5oceans]

That's what happens when there is a risky proposal  or a risky asset or a weak team, the money comes at a premium. NOT TO SAY that ALL the above is reality or in question, some of it might be and so, the lender requires a bigger chunk of the pie. In this case IMO it may very well be the history of the asset.

[roberto146]

Why should the $30 million share issue price be so much lower than the market price? Dilution and risk, the usual reasons. Fully diluted share count may now be 350MM. The gold notes bear 12% interest, payable quarterly, about 800K USF beginning 1Q26. Note that the gold notes are unsecured debt. Also, no startup date has been announced yet, but delivery of gold to escrow is to begin after Jan

[Teccing]

If you check out the chart where vzla raised capital,  you will see same thing  happend to it.  You see a huge collapse in share price, then after the settlement along steep rise. I've been buying a full book here.

[marketsense]

Agree 100%.  The fallout from these financings are a necessary evil.  WRLG gets the money but holders get the temporary shaft.  The institutions make out like bandits as well as big pocketed insiders.  They dump their stock from the units and keep the warrants for free.  License to make money at everyone else's expense. If that isn't enough,  they even go

[Teccing]

Usually it involves Canacord, shorting into finance.  On the USA side the stocks always rally immediately on the financing.   Canada is definitely more a corrupt market, but important to take advantage of the shoring,  by going long.

[goldstd69]

buy the stock while it is cheap...and be patient...jmho dyodd

[Teccing]

I hope nobody is offended , but if you're interested in .making money in gold sector,  consider, and do your own do diligence on Dynacor. It's small gold refining company.  No debt,  cash in bank  pays monthly dividend , recently increased dividend. Not a pump  just like sharing with like minded investors. .