Quote Originally Posted by elZorro View Post
Hi Carpenterjoe, I sold off my AXG shares in 2014 so I wouldn't waste too much time and energy worrying about it. The reason I was involved at all was because with so many permits, surely one of them had to work at some stage. I waited for a few years and didn't see it through. Note that now they just have part ownership in the WKP area and Waihi West, and the latter permit was never mentioned much because Newmont was really in control of it. That's a good thing, because they always have the capital and the proximity to be able to do something. What happens next, when AXG is asked to stump up for some more cash to co-fund drilling at the 40% rate? The cupboard is bare, well, worse than bare. AXG will surely need a cash injection of say $2-4mill just to see them through some more drilling and to stay in the game. At the moment, the TSX says the company is worth about $400k, twice what it was worth three hours ago. That spells even more share dilution, the likes of which the sharemarket doesn't see too often. GEL/AXG had only a brief time when it was valued at more than the cash thrown at it by shareholders. I think it has burned through $35-45mill so far, its a lot anyway.

If AXG rebounds on the market to 15c and holds (instead of falling to 1.5c) just on this press release, that would be a good starting place for capital raising. It's a long way up to there though.

Hence AXG is looking at restructuring with an anonymous third party. Could the third party be Newmont, or one of the many investment vehicles run by Geoff Loudon?
Thanks Mate,

I had written this investment off ages ago, the third party will pretty much own the whole company.