Hi all,I've been following this one for quite sometime and I can...

Hi all,

I've been following this one for quite sometime and I can see value in the company and really quite like the assets but I've been concerned that management are paying themselves way too much and cash burn is too high given the current climate, admin was $500k for this past qtr alone. Plus the share price cannot go up IMO with this equity draw - down facility in place. In fact I was almost about to buy some and when I saw the funding announcement I ran a mile and its halved already since then in just over a month.

In my opinion these guys aren't investors, they are traders who play nothing more than a numbers game.

The model is simple, take a convertible, get paid fees up front, draw down monthly equity, sell it down from equity already held, convert at a cheaper price and so on and so on because no one wants to stand in their way when it starts. If it goes up then they win, if it goes down they win and more often than not after constant selling they get to convert their biggest position in the form of the con note at the cheapest price.

The problem with this is whilst this facility is in place the ability for the company to attract other funding becomes extremely difficult unless of course the company achieves major exploration success.

Sorry to be blunt but just my opinion and I hope I'm proven wrong for all you that are holders.

DYOR