here it is from the company 10q :
"We currently have minimal cash on hand. Our significant capital requirements for the foreseeable future are payment of $305,801 on a promissory note and accrued interest, which is collateralized by the Mill (due June 1, 2013), payment on notes payable to related parties including accrued interest totaling $348,011, re-activation expenses for the Mill (approximately $3 million), and our corporate overhead expenses. Additionally, we must raise and pay approximately $3,160,000 to consummate fully the acquisition of the Silver Wing and Champion Mines."
- I guess it sounds nice everyone just accumulate enough stock so price goes up and they have to dilute less to reach their objectives.But if convertible note holders can convert at an immediate discount,this is a losing proposition until demand for stock increases to offset that discount. Now they announce $3 millon needed to re-activate the mill.So at a range of $.002 to even $.01, that is 300 million to 1.5 billion shares on top of shares to be issued for quarterly burn rate and existing comvertibles.
So I fail to understand why another reverse split is not a possibility. CFO is boxed in as far as I can see,so the alternative seems to be a joint venture fast before situation out of control again unless the belief is price will skyrocket when permit without conditions granted,and contrary to all trends in the industry CFO can finance this according to "conventional means.
It is a sub penny stock, and they control a mill, which is more than many sub penny mining stocks, and gold price still at historic high level. Why shouldn't company bite the bullet and find a better strategic plan to deliver shareholder value ? Why go down same path that already didnt work ?
If detractors having such an effect ( which I dont think so though), then why wouldnt CFO announce (a) he is releasing his second lien on the mill (b) reducing his voting rights to 25% - wouldnt that show confidence he has in future ?
