I do not agree that just because they want to preserve cash, they can give out 12 million shares for 5c. This is too low of a value to place your shares when market was trading at 9c not more than a month ago.
a) If there are T & C applicable, it should be available in ANN and any deal has to be transparent to SH than Ifs and BUTs
b) In a way it is good to have long term drilling contract but not at the expense of SH money. For a 15m+ market cap company, giving 600k to driller should not be much of a challenge and something does not look good looking at the number of shares to be issued
c) I am not sure about CR and hope they do not do it before solid results which raises the SP and then they can do at a nominal price
Just because it is a speculative stock does not mean that they can play with SH money in any way they want. They should be accountable and responsible for the decisions they make.
NWR Price at posting:
7.7¢ Sentiment: None Disclosure: Held
