The danger of convertible notes, especially when issued to firms...

The danger of convertible notes, especially when issued to firms such as La Jolla, Springtree, Lind Group & now Magna.

On August 12th - $160,000 was received as first part of Tranche A

So far, only $75,000 worth of shares has been issued for a total of 6,202,923 MNQ shares

this leaves us with another $85,000+ worth of shares to be issued

As of today, Magna has another ~2 million shares to sell - not only has this been detrimental to the share price, but the VWAP is now lowered therefore causing further equity dilution to us shareholders when the next 3B is released.  

To top it off, the new convertible note agreement states that as of November 2015, Minquest will receive $60,000 in monthly instalments for a total of 7 months.  This represents the amended second and final part of Tranche A.  Can you imagine the amount of dilution should the share price stay at these low levels.

But that's not all - everything mentioned above excludes the 5,400,000 MNQ shares issued to Magna as part of a separate placement done in August.  

Broker trades suggests Magna is planning to sell everything, even at a loss.

We now see the epic danger of convertible notes, especially issuing them to an entity that strategically sells everything and lowering the VWAP to gain even more shares.

Should the share price stay where it is, with no major news & positive market awareness in the next 6 - 9 months, expect an addition of 45,000,000+ shares to our register  - plus continued selling by Magna at each periodic 3B.  We are lucky that they are only allowed to sell $10,000 worth of shares per trading day.

Gold acquisition is the key.  This is our only hope to excite the market & hopefully increase the share price, thereby minimising future equity dilution . I am sure our major shareholders will agree.