I was just giving the 'why it is bad explanation' Obviously:...

I was just giving the 'why it is bad explanation'

Obviously:
raising money is better than going broke
raising money to accelerate growth is a good thing
In theory if the market has valued GRK correctly at $10 million then post capital raising it is still worth $10 million but now we have $5million cash - 10+5= $15m so 'theoretically' nothing is gained or lost.

The flip side is that GRK has a small chance of becoming huge. Say for instance you think that there is a 1% chance that GRK will 10x ($10m ->$100m) because they find something, now as the value of GRK is $15m, going to $100m is only 6.6x.

That is to say under those assumptuons you have gone from a 1% chance of 10x to a 1% chance of 6.6x.

With all that said, capital raising is a natural progression in junior minors so if you didn't have it CR priced into your valuation then you would need to adjust your model.