Shame on Barkerville Gold ( TSX:V.BGM )-- Another senseless and dilutive equity placement -- 20 million shares, or about 20 percent of the common outstanding. With possible finders' fees? Fuhgeddaboutit. To be candid, I do not care if part of the discounted offering (at 50 cents a share) is going to relieve debt load. I do not care about the company's looming gold pour at its British Columbia property.
What I see is this: Barkerville's paper manufacturing is among the best examples of the worst equity destruction in modern Canada-junior mining history. I see the company must extend its capital working requirement and agrees to give more gold to its main lender, essentially Eric Sprott's Ontario partnership. See: statement .
I wonder how the shares of J. Frank Callaghan 's Barkerville are staying above 50 cents in the wake of the offering announcement Friday . They are down about 18 percent in the usual Vancouver PDAC maneuver: try to raise shares amidst the possible glory of the annual Prospectors gathering in Toronto ( next week ).
Shame. Shame. A thousand times shame. I do not own BGM shares.
A Thom Calandra report
Shame on Barkerville Gold ( TSX:V.BGM , Stock Forum ) -- Another senseless and dilutive equity placement -- 20 million shares, or about 20 percent of the common outstanding. With possible finders' fees? Fuhgeddaboutit. To be candid, I do not care if part of the discounted offering (at 50 cents a share) is going to relieve debt load. I do not care about the company's looming gold pour at its British Columbia property. ( See Stockhouse article. )
What I see is this: Barkerville's paper manufacturing is among the best examples of the worst equity destruction in modern Canada-junior mining history. I see the company must extend its capital working requirement and agrees to give more gold to its main lender, essentially Eric Sprott's Ontario partnership. See: statement .
I wonder how the shares of J. Frank Callaghan 's Barkerville are staying above 50 cents in the wake of the offering announcement Friday . They are down about 18 percent in the usual Vancouver PDAC manoeuvre: try to raise shares amidst the possible glory of the annual Prospectors gathering in Toronto ( next week ).
Shame. Shame. A thousand times shame. I do not own BGM shares.
Read more at http://www.stockhouse.com/opinion/independent...8xclHjI.99
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