Major dilution ahead - confirmed by CEO

Marcus Englebrecht has carried out a lengthy interview with Value The  Markets  

http://www.valuethemarkets.com/inde...s-development-progress-jewel-firms-crown-cas/

He has confirmed the company will need to raise 30%-40% via equity in respect of the US $93m needed to fund the processing plant. That $30m+ is major dilution given the current value of Crusader is $13m.

Separately he has also confirmed CAS will need to go back to the market to raise further funds (for G&A etc) ahead of production, he does not mention a number but the current spend is around $1.5m quarterly.

In a nutshell, like his Stratex proposition to their shareholders (rejected by a investor revolt) bringing the mine into production will clearly heavily dilute current stockholders, so where is the incentive to buy CAS shares currently? He does not elaborate or seeming have concern over this dilutive aspect.

The question remains will the share price fall further and can they realistically raise $93m via debt & equity to build the mine, there must be some doubt.

Whilst the interview seems quite upbeat until the dilution aspect is addressed what incentive is there to buy the shares, surely they will be cheaper in due course.

Do your own research & no advice intended