Mining Company research board

[Blindsquirrel]

OIC. So it is better to dilute shareholders by selling your future revenue stream for pennies on a dollar instead?

Do you have any idea how many mines Waterton and their ilk now own from defaults on gold loans where the mine itself was used as collateral?

At least the type of convertible debt NBRI has issued is unsecured. When conversion occurs shareholders are diluted but NBRI keeps its assets. The conventional debt you speak of is secured and the entire company is at risk if they dont hit their milestones.

Heres one of many examples: http://ih.advfn.com/p.php?pid=nmona&article=62824665

Shelf offerings are also very toxic. ABX recently did a shelf offering for over $3B at a steep discount to the market price. How is this not toxic debt? Massive dilution and the institutional investors get a sweetheart deal while the retail investor gets the shaft. So this is better? LOL!

http://www.bloomberg.com/news/2013-11-01/barrick-gold-sells-shares-to-fix-balance-sheet-corporate-canada.html?cmpid=yhoo

Nov. 1 (Bloomberg ) -- Barrick Gold Corp. (ABX) is raising at least $3 billion in Canada’s biggest equity issue since 2009 and shelving its embattled Pascua-Lama project as the miner scrambles to reduce debt after the metal plunged this year.

Barrick, the world’s largest gold miner, said yesterday it agreed to sell at least 163.5 million shares for $18.35 apiece. News of the share sale came hours after Barrick said it was suspending construction at Pascua-Lama, a $8.5 billion mine on the Argentina-Chile border. Barrick fell 7.1 percent to close at $18.01 today in New York.