Past year: ▼ 90%(1.00c – 10.5c CAD)
Each one in plain English, with the numbers worked through for a shareholder.
29 Jan 2007capital raising announcement● Neutral
Between January 23, 2006 and January 29, 2007 the company issued 12,561,667 shares and warrants over 3,140,417 shares to nine investors for about $3,768,500. Broadband Capital Management LLC and Paul Ensor were placement agents, paid a 7.5% cash fee plus warrants over 942,125 shares. The investor warrants are exercisable at $0.40 for eighteen months. This is another round of share sales that dilutes existing holders (inference).
16 Aug 2006capital raising announcement● NeutralMajor
On August 15, 2006 the company's Mexican subsidiaries signed a credit agreement with Standard Bank for up to US$12.5 million to build El Chanate. It bears interest at LIBOR plus 4.00%, is guaranteed by the company, and is secured on the subsidiaries' assets. It is repayable in fourteen quarterly payments, with the first payment expected after start-up criteria are met, which management believes will be in the first quarter of 2008. This completes the loan negotiated through the earlier hedging agreements, although borrowing cannot start until Mexican collateral documents are formalised. As a fee the bank received 1,150,000 shares and a warrant over 12,600,000 shares at $0.317. The board also adopted a shareholder rights plan (a poison pill, with rights triggered at 20% ownership, expiring August 15, 2016) and bylaw amendments, including removing the right of 10% holders to call a special meeting. The rights plan lapses unless shareholders approve it by February 4, 2007.
16 Feb 2006capital raising announcement● NeutralMajor
On February 10, 2006 the company issued 12,780,000 shares and warrants over 3,195,000 shares to 37 investors for about $3,195,000, again through IBK Capital Corp. (9% fee, agent warrants over 934,000 shares). The warrants are exercisable at $0.30 for eighteen months. Separately, Standard Bank Plc extended its commitment letter for a senior project finance facility of up to US$12 million for El Chanate until April 30, 2006. The filing also lists 2,955,004 shares issued in December 2005 and January 2006 on exercise of warrants and options. This is another equity raise continuing the El Chanate funding effort, and the bank loan is still not finalised.
11 Aug 2005capital raising announcement▼ Bad
On August 8, 2005 the company became obliged to issue a further 5,440,002 shares to investors in the February 2005 private placement. The obligation arose because its stock was not listed on the Toronto Stock Exchange within 180 days of that placement's closing. The shares are in the process of being issued, which adds to the dilution from that placement (inference).
10 Feb 2005capital raising announcement● NeutralMajor
The company closed a private placement on February 8 and 10, 2005 of 27,200,004 shares plus warrants over the same number of shares to 20 investors, for about $6.8 million. IBK Capital Corp. was placement agent, paid a 9% cash fee and received warrants over 2,702,000 shares. The investor warrants are exercisable at $0.30 for two years. The press release says proceeds are mainly for building the El Chanate open-pit gold project in Sonora, Mexico, with initial site work to start immediately. This funds the project but issues many new shares, diluting existing holders (inference).
