Replies to post #46533 on Mexus Gold US (MXSG)

[gitreal]

It doesn't help cash flow, but it does take pressure off Mexus if they no longer have a bunch of loans to pay off. It is easy to issue common shares, probably the main reason they set the AS so high (5 billion). They knew at some point that they'd be issuing piles of shares.

This stinky deal is one-sided. By the time restrictions come off the hundreds of millions of shares (or will it be billions?) that are going to be issued, they'll be worth $0.0001. Or less, if there is a RS.

I was wondering what PT's end game was, and now we know. There is no JV, there will be no drilling, there is no "miner" waiting in the wings. It's BS designed to entice the "shares for debt" deal......

[A Dinosaur]

It's almost the equivalent of a BK except it doesn't wipe out current stockholders. Without the overhang of a couple million or so of debt accruing interest, any additional funds they raise can be used for drilling, leaching, etc. If those are the terms offered, I understand why they are necessary and will go along with them. The alternative would be to wait until the court ordered sales are complete and write off my total investment - stock as well as loans.

Dino