Hi Saul,
Why don't you take a closer look at Mirandor's most recent financial statements. You might understand why Mirandor has a "need" to do a private placement. As of the end of the third quarter, Mirandor had $209,669 in current assets and $384,918 in current liabilities. That's a $175,249 short term deficit at the end of September. If they spent money in the fourth quarter at the same rate as in the first three, that deficit would be $104,024 higher or $279,273.
As to whether Mirandor should be spending so much money, that's another question. What I will say is that "investors" as a general rule have no idea of how expensive it truly is to run a public company.The Montreal exchange has annual fees, lawyers charge for their regular dealings with the exchange and securities commission
( do you think that Mirandor's lawyers reviewed the joint venture agreement for free), accountants have audit fees, Mirandor has its own geologist(s?) on site assisting Kinross.All these expenses add up quickly.
Most of us believe that Mirandor has an excellent prospect with the Railroad project. However, what if it turns out to be a dud? I fully expect Mirandor's management to be actively seeking other investment opportunities. I believe that these constitute an important part of Mirandor's expenses over the last 1-2 years.
Under the Quebec Securities Act, the minimum private placement to a non-insider is $150,000. I'm quite pleased, given the current debts, that they only raised that $150,000.(Generally these shares are escrowed for a year, so this is no quick flip to a buddy of the president)
Like the rest of the followers, I'm quite anxious to get the results, however I realize that the company incurs debts in running its operations and accept that the only way to raise that money is to issue shares.
Philip |
