"The net proceeds of the financing will be used: to pay off the principal owing on the existing financing of CAD$16,450,000; to purchase 4.112 million warrants for CAD$1,644,800 which is equivalent to a buy-back of stock for the same number of shares at CAD$.40 per share; for continued development of the McWatters and Hart mines, and for general working capital."

$18,094,800 is to be used and that leaves $13,905,200 for development assuming its is fully sold.

32 million dollars breaks down into 32,000 units at $1,000 each with 250 share purchase warrants attached .

32,000 units x 250 share purchase warrants=8,000,000 possible shares if fully notes are fully sold out and then exercised. (But they will be effectively buying back 4.112 million shares initially)

1 hour into trading since the news and 538,000 shares have moved and we have seen the intraday low of .165 again.