I think this dilution was expected.
Please read an excerpt from a research article in July.
"With a change in management, renegotiated creditor terms and millions spent upgrading its processing plant, one junior Australian gold producer is looking to take the next step on its journey and turn things around for its shareholders.
An investment in this ASX stock is not for the faint hearted – but long term, contrarian investors, please read on.
After a few years that this gold producer would rather forget, the company is seeking to embark on a new era, and realise the true value of the multiple high grade, low tonnage deposits that dot the landscape at its Mineral Hill Project in NSW.
Mineral Hill has seen over 20 years of historical multi-metal production, and this company’s current resource size equivalent amounts to seven years of production, which could be extended by further exploration.
The company has faced a host of issues recently including an aggressive attempted takeover, plummeting base metal prices, a plant that was delayed and over budget and to top it off, an extreme weather event that caused a crack in the haul road to its open pit mine taking away its profitable ore source.
All this led to large outstanding debts that in turn delayed the long-term development plans of the company, and many frustrated long-term holders.
The haul road has now been fixed, normal pit production has resumed, and the company is now raising$6M in an effort to finally sort out its balance sheet – and with that things should hopefully pick up for this stock."
