Wednesday, November 4, 2009

The 0,5-1,5 million dollar deal still with us?

Hi

I mailed the IR( i know Brent has left the company ), i let you know. In the Circular i can't see anything about it, but the thing that could stand against it, is this: that we get more from the ~61k expanded gold deal ounces wise, then from the original deal. It also say´s that the money could change, and because of the current gold price and if it remains, maybe just maybe we may get even better conditions. This money is important especially if it's net money as i understand it is, it would currently give us US$1,5M per year*5= US$7,5M / Juha

2 comments:

juha said...

It could also give us even more than the original $7,5M, because of the expended ounces count

production05 said...

It is unfortunate that Peggy and Union Securities couldn't/didn't close off all $4M of the bridge equity financing up front. Who knows, maybe the only remaining offers were for less than $.20. I would rather wait for people to raise their offers to $.20 if that was the case, especially with US$1,100 gold. This severe discount approach needs to stop.

It is also unfortunate that Finskiy and Scola didn't just take down most of the bridge equity. It would have sent a powerful message to the market and it would have allowed the company focus entirely on mine preparation, and not spent time looking under the couch for pennies to pull the bridge financing together.

Anyway, my guess is that today's heavy sales have to do with people raising cash in the open market to to participate in the various PP financings.