<<I'm a shareholder too, but it's time to be realistic and face facts, there is a catch, and when the market hears it (after the AGM) they'll make a decision as to invest or not.>>
Alex, I have no doubt MXAM is giving away quite a bit to raise this $30 million. People don't give $30 million to a company worth $10 million (MXAM's approximate value before the announcement of the deal), and with no history of production, without exacting a heavy price.
But without this deal, MXAM was going nowhere. Even if they've mortgaged their entire profits from the Peoria mines for 10 years, a working mine is still a great deal for MXAM. They had to get funding to build a mine. They have to build a mine and prove that it works to realize any value for shareholders. I'm sure, with this first financing, the terms are stiff. Once the concept is proven via a working 10,000 tpd mine, financing terms for the next 10 mines should be much more favorable. |
