Gold and Silver Juniors, Mid-tiers and Producers Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: niceguy767 who wrote (64753)	4/10/2009 6:55:22 PM
From: Postman	1 Recommendation Read Replies (2) of 78408

niceguy- We all have our own criteria and I respect yours- I certainly don't want to crap on anyones favourite deal however it pays to be aware of the risks in this business I have found- -What has worked for me is buying into juniors when they are just starting out, at about $5-$10 million market cap- Essential criteria also includes confirmation of a hot market for their product, a highly prospective property and smart management team. ----------------------------------------- -MTO looks like a very successful operation but costs are hard to control- -For example in October when they poured their first ounce the CEO announced they would fund operations from gold sales- Then in January they announced a fund-raising which dilutes the stock by about 35-40% if all warrants are exercised- (if my math is correct) What happened in 3 months? "Serge Roy, Chairman and CEO and Ghislain Morin, President and COO both stated: « Metanor and its team have built North Americas Newest Gold Producer in record time and we are coming online at the best time ever. The current worldwide financial crisis has made gold once again the safe haven investment of choice and we produce it. What a great opportunity for our Company to grow and prosper and also self finance its future exploration from cash flow thereby avoiding significant dilution to its shareholders." Follow the money: -Management gets to keep their jobs and gets to spend the $12 million as they see fit but the shareholders are forced to accept a 35% haircut on their investment- -Brokers get 6% in cash and 6% in warrants for a 12% fee so they are obviously motivated to get a deal done at any price- Commissions are $720,000.00 of the cash raised......plus 6% in warrants (again if my math is correct) "The agents received a cash commission of 6 per cent of the gross proceeds of the offering, as well as broker warrants allowing its holder to purchase a number of units equal to 6 per cent of the number of units sold pursuant to the offering."

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next