Each one in plain English, with the numbers worked through for a shareholder.
8 Feb 2011capital raising announcement● NeutralMajor
The company was in default on gold deliveries due November 2010 under its gold forward contracts (the notes payable in gold from 2009-2010). It settled about 1,300 ounces by issuing 10,931,982 new shares, and moved about 191 ounces to November 2012 at a higher interest rate (lesser of prime plus 8% or 12%). This clears the default and leaves 406 ounces due October 2011 and 191 ounces due November 2012, but the share issue is significant dilution.
The company closed another private placement, selling 4,169,850 units at $0.18 each (one share plus one warrant at $0.36 for two years) for about $750,000 gross and $677,000 net, to fund Chandalar exploration and development and general costs. The price is below the $0.30 units sold earlier in 2010, so shareholders are diluted at a lower price; the company can shorten the warrants' life if the stock trades above $0.72 for 20 straight days.
What it means for a shareholder
4.2m new shares at US$0.180 to raise about US$750,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
18 Oct 2010capital raising announcement▲ GoodMajor
The company announced the close of its unit private placement: 4,105,998 units at $0.30 each (one share plus a half warrant at $0.55 for two years), for net proceeds of $1,231,780. This continues the April 2010 placement, of which 695,000 units were already reported, and the company says the money funded mining at Chandalar. It also says it received another $625,037 from gold notes in 2010 and bought $1,238,050 of equipment for its first significant step into gold production.
On April 1, 2010 the company announced $1,756,442 of new financing: $615,037 of notes payable in gold, $208,500 from selling 695,000 units at $0.30, and $932,905 of secured equipment vendor loans. About $1.3 million is to buy equipment to begin commercial production at Chandalar. The gold notes can be settled in gold or converted to stock at $0.45, and the units sit within a board-approved private placement of up to $7 million. This moves the company from exploration financing toward production financing and adds debt and warrants.
3 Mar 2009capital raising announcement● NeutralMajor
The company issued 5,072,328 common shares to RAB on February 27, 2009 by converting the $1,000,000 debenture and $14,465.75 of interest at $0.20 per share, after the maturity was extended from November 21, 2008 to February 27, 2009. This resolves the RAB debenture thread, removes that debt, and leaves 44,219,712 shares outstanding. The filing says the company did this to reduce costs and future commitments and is in cash conservation mode.
5 Jan 2009capital raising announcement● NeutralMajor
On December 29, 2008 the company closed a private placement of 225,000 shares of a new Series A Convertible Preferred Stock at $1.00 each, raising $225,000 from three investors. The preferred stock converts into common at $0.16667 per share, pays a 5% cumulative dividend (payable in cash, stock or gold from Chandalar), and ranks ahead of common shares in a liquidation at $2.00 per share. The company says it may sell more of this stock; the proceeds are modest relative to the 2009 Chandalar financing it says it still needs to secure.
The company (now named GoldRich Mining Company) ended its leases on the Broken Hills West property in Nevada and the Pedra de Fogo property in Brazil, returning them to their owners on May 30 and June 3, 2008 with no retained interests or liabilities. The filing says this was to conserve resources and because exploration results did not justify the upcoming lease obligations. It will keep exploring Chandalar and is drilling on a leased property at Marisol, Mexico, with assay results expected soon.
On April 30, 2008 the company received an independent scoping study on the alluvial gold deposit it found in the Little Squaw Creek area of its wholly owned Chandalar property. The study estimates 243,621 ounces of gold in total, of which at least 216,602 ounces are recoverable (measured and indicated), at a cash cost of about $500 per ounce. This follows the 2007 trenching and drilling work at Chandalar. The company says the figures do not meet the SEC's standard for a mineral resource (Industry Guide 7) but that it believes they meet Canada's NI 43-101 standard, and it says no reserves exist until further drilling, a feasibility study and permitting are done.
On December 20, 2007 the company reported trenching assay results from its wholly owned Chandalar, Alaska property, with gold in multiple structures. The best prospect was Mikado, where gold was traced over 2,500 feet with an average trench intercept of 24 feet at 0.023 oz/ton. The 2007 program has set several diamond drilling targets for 2008. The company says continued exploration 'could' lead to a commercial deposit; this is exploration, not a resource estimate.
