If they come up with something enormous,(more than a million or two
ounces) then doubling the number of shares outstanding is not a pro-
blem,these small co's are in the business of selling stock,and most
if not all of them don't care about shareholder's value dilution.
Now it's not written anywhere that they will issue that many shares
nevertheless :" Proceeds from pp's will be used to fund exploration
work and to increase working capital of the corp. This is why share
holders shall be asked to pass a resolution authorizing the Corp
to issue or negotiate transactions making up to 21,166,748 Shares,subject to issuance to pp transactions, in excess
of the 21,166,748 common shares already issued and outstanding.
If, say, the stock trades at one dollar and they issue 5 million shares
that's not too much dilution,if they double the number of shares
outstanding at a low price that's not too good.
Joe |
