Here's some more information about MTO from the Smart Investment site:

Thanks for the info Jon, but I'd like to provide a bit more detail. Things can be misleading otherwise.

1) The grade, and therefore production at Barry, which greatly effects cash costs, can vary greatly. The grade at Barry is not consistent. They recently hit 33 meters of 9.24 gpt. At some point they will likely be able to mine that. And where there is some, there is very possibly a lot more. Thus, the greatly increased drill program. One thing MTO does not do is sit on their hands.

On the other hand, at one point they were stuck in some lower grade stuff and had to get through some ore that was only 2.5 or so. Also, this quarter they had some down time due to not wanting to parade the trucks past the families of the deceased miners. They ran ore through the mill from the stockpile during that time, but they experienced some slowdowns due to the tragic accident. I had thought that progress at Bachelor would have been held up for much longer, but they were cleared to continue in very short order.

They are doing a 20,000 meter drill program because they are very excited about what they have been finding. This of course costs money. If they can prove up enough ore at Barry, they could possibly get a concentrator and crusher there and greatly reduce trucking costs and greatly increase the grade of the ore put through the mill because it would be concentrated. But we are a ways from that happening and of course it would take some cash. I've heard the number of 10M being thrown around. In effect, good news creates spending. MTO has had a lot of both. Trying to deepen the shaft and get underground at Bachelor lake, expand the mill, and now, because of good results at Barry greatly increase drilling, has upped their burn rate temporarily.

2) I think a more realistic time frame for Bachelor production is about 8 months from now. The accident slowed them a little, not much, but spring is optimistic IMO.

3) They should be starting to ramp up the mill very soon. Probably before year end. Then they will increase to 1200 tpd over time. It won't go to 1200 instantly. That time frame is a bit hard to call, but MTO is strong in this area. They are good miners. Great miners. Could use a bit of help on business decisions sometimes IMO, but they are improving in that area as well.

With two mines eventually, the share count, which still may rise more, could still be OK. They can expand the mill even more if they want. Again, that will cost money. There really are no limiting factors with MTO except that all expansion costs money. Hopefully, each decision will be the correct one. Hewfran and Nelligan have potential. They may eventually sell Dubisson. There are a fair bit of ounces there, but IMO too much for MTO to take on. They have enough on their plate already. I forget the name of the nearby company to Dubisson, but it could make sense for them to purchase it.

They could also end up with more ore from some of the smaller nearby deposits (as they did with Barry) that are too small to support their own mill. The Noront deposit is small but possibly very high grade and in the area and Noront has bigger fish to fry with their base metal project. So there is a possibility there as well. So there is much potential for both expansion and dilution. But once they get the mill going at a higher rate, and get the grades up due to the higher grade Bachelor ore, which they would mix with the Barry stuff to create some consistency, they could start to show some real cash flow and quite quickly. In addition, hopefully some more sweet drills at Barry (they have very high hopes for this) and are drilling like crazy, could really give us a boost. Once cash flow improves, possibly some debt financing could be obtained at decent rates and the dilution would cease.

So basically, they are a very busy company, with some great possibilities but due to the market are having to dilute at less than optimal prices. I suggested they try and raise money on the the recent spike into the 80's, but they said they would do it at a dollar. Seems I hear that from a lot of companies. They get cocky when things are going well. I've learned to grab the money when it's available at even a half decent price. Maybe they have now as well. In any case, this financing is fairly small, though my guess is it could be more like 6 instead of 4, but the good news is that they are even able to easily raise money and at market prices. Not at the shorted down reduced price that often effects many companies. It is still a tough environment and MTO has garnered a lot of attention. Eric Sprott is now the largest shareholder with just under 20% of the company.

So while the risk may have increased because they are being so aggressive, the reward side may still be very good even with the increased number of shares.

So the question is: DO YOU FEEL LUCKY?

I'm a bit more comfortable with something like GOZ, where I believe there will be no more dilution. But they had a bad quarter last time and were punished severely. Way too much IMO and I believe they will recover over the next quarter or two which should be much better. But MTO is in Quebec, not Sweeden, and they get a lot more publicity.

Take your pick and put your bets down

GLTA to all MTO supporters.

Hope this helps.

paperboy