Cibolan Gold Corp. (fka CIBG)

[runwitheggsin1basket]

Company CFO Dan Forbush said, "Turning our surface and shallow mineralized material into Guide 7 reportable reserves and achieving near term cash flow through production will add substantial value to our Company and shareholders and will enable us to raise further equity at better prices, minimizing dilution. We are also exploring possible gold loans to raise the $3.5 million to finance production, which will enable us to finance our operations from our reported reserves, rather than through further share issuances."

to me this sounds like they have to sell shares to get the money (minimzing dilution). (exploring possible gold loans) they would need to prove that there is enough gold there first. and phase one drilling could do just that.