Each one in plain English, with the numbers worked through for a shareholder.
26 July 2007capital raising announcement● NeutralMajor
Piedmont completed a private placement of 3,750,000 units at $0.16 each, raising $600,000 before a $20,000 placement fee and about $1,982 in expenses. Each unit has one share plus a half or full two-year warrant at $0.20, so existing shareholders are diluted; the company says it plans to accelerate exploration, and must file a resale registration within 60 days for some of the shares.
What it means for a shareholder
3.8m new shares at $0.160 to raise about $600,000. Shares on issue before the raise aren't in the record, so the dilution can't be worked out.
Effective April 17, 2007, Piedmont signed an option deal with Miranda Gold U.S.A. on the PPM Project in Humboldt County, Nevada. Piedmont can earn a 55% interest by spending $1,750,000 on exploration over five years (at least $175,000 in year one), then form a joint venture with Piedmont as operator. The press release adds that Piedmont must pay Miranda $25,000 within 30 days and can terminate on 30 days' notice after year one.
Piedmont's auditor, Pratt-Thomas & Gumb, told the company on October 31, 2006 it would resign after reviewing the September 30, 2006 quarter, and the company hired Dale Matheson Carr-Hilton Labonte on November 1, 2006 to audit 2006. The filing says there were no disagreements with the old auditor, but its reports for 2004 and 2005 included a going-concern doubt.
