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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers -- Ignore unavailable to you. Want to Upgrade?

To: jackjc who wrote (48281)	8/29/2007 6:53:08 AM
From: tyc:>	Read Replies (2) \| Respond to of 78430

>>Glad to see the Wolverine getting financed. Problem there is the stock price and large equity portion needed implies huge dilution,so questionable what the holders will get out of it. Is there not a logical error here ? It is true that there will be a dilution for all stock bought at higher prices, but it seems to me that the dilution will not apply to stock purchased at the same price as the new equity financing.... i.e. stock bought at the current low price. It seems to me that one should consider the total market cap. rather than the number of shares outstanding. Currently it stands at only ~$75M, and with the equity financing required it will increase to ~ $225M, I think. This does not seem "highly diluted" to me. (maybe my delusion, though).

To: jackjc who wrote (48281)	8/29/2007 9:25:49 AM
From: LoneClone	Read Replies (1) \| Respond to of 78430

Rosemont is now fully permitted. Water was the big issue, but they have already begun storing onsite enough water to run the mine for its entire life. The resource is also larger now than you would have seen when you looked at it. IMO Augusta management has done a great job so far, and Sumitomo agrees -- they recently bought a PP well above the then-current pps for 8.7% of the company. What they are working on now is securing financing. LC