Petaquilla Minerals Ltd. (fka PTQMF)

[DigiTech]

Here we go again about willfully inaccurate information on PTQ dilution.

Here is "WHAT you say"

"when you quadruple the sharefloat-you decrease the value by 75%"
Not if you do a merger or an asset acquisition with shares.

"the burgeoning sharefloat "

My only answer to that is my previous post about PTQ share float.

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Here is what I posted before:


Dilution is it real or not?

First we have to realize that an exploration company has no revenue therefore if the company needs money to explore or to build let's say a mill they either sell future production sell shares or borrow the money. The sell of shares is via a private placement or the exercise of options by management.

PTQ did all of the above and as JFF pointed out PTQ did a very limited number of private placements as compared to other companies in the mining sector.

The dilutive effect of private placement depends on what the company does with the money. If it goes to expenses it is dilutive if it is to buy or build an asset it is not.

It should be noted that in 2007 the asset value of the company was $46M. Today the asset value is $223M

It should also be noted that during the last several years management has exercised their options with their own money at a much higher conversion rate than the present share price.

All the following numbers are rounded out

On April 30th 2007 the company had 90M shares

PP of 4.5M shares with proceeds of $11M
Option exercised 1M shares with proceeds of $3M
Warrants exercised .4 shares with proceed of 1.1M


On April 30th 2008 the company had 96M shares

Option exercised 100,000 shares

On April 30th 2009 the company had 96M shares

PP of 28M shares with proceeds of $12M
Option exercised .8M shares with proceeds of $.6M
Warrant exercised .5M shares with proceed of $.4M

On April 30th 2010 the company had 125M shares

PP of 32M shares with proceeds of $32M
Option exercised .5M shares with proceeds of $.6M
Warrants exercised 18.5M shares with proceeds of $12M


On April 30th 2011 the company had 176M shares

Acquisition of Iberia for 44M shares. Non dilutive event since it is an asset acquisition

On April 30th 2012 the company had 221.9M shares

Since that time
Option exercised 366,000 proceeds $3M

As of fiscal Q3 2013 222.2 M shares


In conclusion the delicate balance of dilution during exploration and growing the company assets was very well managed and the massive dilution of 3X with continued massive dilution in the future is just not real.