The NOT PP dilutiion was "only" about 4.5% (including the underwriter fees ...size of fees is standard for these type of PP transactions. NOT gets another $10M to drill. {NOT at AGM said they had enough money to continue its already heavy/complicated/high drill risk drilling schedule through to FY yr end in apr/2011..... this doesn't mean that getting more PP money shouldn't be done if its available in apparently oversubscribed $$ amounts. Dilution risk vs reward.
The question is why another $10M if you don't need the money- they say? ; and despite "were cashed up" pronoucements from AGM?
The answer is : to reduce lack of drill success risk and speed up the timeline of success.
My take is that its insurance drilling money to ensure the big "convergence" hit/confirmation News Release (NR) that is needed in order to:
a) prevent a heavily rumoured LOW PRICE hostile takeover at the currently low $1.25-$1.40 sp; and/or
b) speed up the drilling/assay reporting/43-101 update reporting (these all cost alot of money likely unbudgeted in the current FY budget.
This latest PP produces $18M current drill budget + $10 PP funds= $28M for drilling/assay/reporting between now and April /11 end of winter drilling season in april. Thats alot of drill money despite the already highly success hit rate/sinificantly lowered drill cost/hole of the new inverted ZTEM /others technologies . And remember, you can drill much more in the winter than the summer in the RoF bog.
Its guaranteed (IMO) that Mcginty will fund hydro/railway etc to save his election ass in Northern Ontario.
This will ensure the NOnt. vote.
My Agor/NOT oct 24 post (IMO) indicated a "material NR" by Xmas.(myopinion only).
The PP ensures it (the material NR) in my opinion. My opinion only.
Peter
