NTL - New Talisman Mine - New board & Directors

[blackcap]

Yes but this was a capital raise not a rights offer. Remember last year a 2 for 1 renounceable rights offer was announced by Matt which was immediately cancelled by the new Board in October. This I applauded as it stopped the dilution. Now it is back in the frame presumably because the capital raise initiative only attracted Hamish Brown's initial $1 million contribution and the Board can now see a budget hole before gold is produced. I agree it is good management plan to put their own money into the venture but you are incorrect saying the previous management did not if you look through the historic Top 20 shareholder lists. Cross fingers the rights offer now comes off and the costs doing it are successfully recovered.

I don't understand your point about dilution. Any capital raise (by whatever means), if shareholders do not participate, will cause dilution to shareholders.

[blackcap]

duplicate duplicate

[Felonius]

Re dilution.
I try to value the company based on it's market capitalisation.
At 0.002 cents per share the market cap. is about $6,500,000.
At 0.003 cents per share " " " " " $10,000,000.

If the cash issue raises say $3.5 million at 0.002 - 0.003 cents per share that will ADD up to $5,000,000 to the market cap.
A market cap of $15,000,000 for a gold explorer with a strong board, good prospects and money in the bank strikes me as well-priced.

Of course buying shares in NTL is NOT AN INVESTMENT !! - It is a punt.
As pointed out earlier I bought shares in the company recently.

[Felonius]

Re dilution.
I try to value the company based on it's market capitalisation.
At 0.002 cents per share the market cap. is about $6,500,000.
At 0.003 cents per share " " " " " $10,000,000.

If the cash issue raises say $3.5 million at 0.002 - 0.003 cents per share that will ADD up to $5,000,000 to the market cap.
A market cap of $15,000,000 for a gold explorer with a strong board, good prospects and money in the bank strikes me as well-priced.

Of course buying shares in NTL is not an investment - IT IS A PUNT.

As pointed out earlier I recently bought shares in the company.

[Paint it Black]

I don't understand your point about dilution. Any capital raise (by whatever means), if shareholders do not participate, will cause dilution to shareholders.

A rights issue will offer additional shares at a discount to the current SP in order to be attractive to investors. As an example if you own 2 apples currently each worth 12c and you are offered an additional apple for 6c then you will own 3 apples costing you a total of 30c or 10c each. However if you choose to not participate in the rights offer and stay with 2 apples then the market value of your apples has diluted by 2c from 12c to 10c. To complicate it, with a renounceable rights offer, the rights to participate may also be sold on the market which if done can reduce the dilution. Another effect of a rights offer is that the SP will drop, as has already happened this morning, as shareholders hedge their bets on the success of the offer as they are likely to be able to buy back in at a discounted price while investing elsewhere in the meantime.

[whatsup]

Re dilution.
I try to value the company based on it's market capitalisation.
At 0.002 cents per share the market cap. is about $6,500,000.
At 0.003 cents per share " " " " " $10,000,000.

If the cash issue raises say $3.5 million at 0.002 - 0.003 cents per share that will ADD up to $5,000,000 to the market cap.
A market cap of $15,000,000 for a gold explorer with a strong board, good prospects and money in the bank strikes me as well-priced.

Of course buying shares in NTL is NOT AN INVESTMENT !! - It is a punt.
As pointed out earlier I bought shares in the company recently.

RE dilution, this company has almost gone past dilution unless you are a new investor say 3 years, from here on out its about clawing something back after imo this company has been bent over by previous management, if we could only be mining things would be vastly different, soooooooo many c rs over the years !

[blackcap]

A rights issue will offer additional shares at a discount to the current SP in order to be attractive to investors. As an example if you own 2 apples currently each worth 12c and you are offered an additional apple for 6c then you will own 3 apples costing you a total of 30c or 10c each. However if you choose to not participate in the rights offer and stay with 2 apples then the market value of your apples has diluted by 2c from 12c to 10c. To complicate it, with a renounceable rights offer, the rights to participate may also be sold on the market which if done can reduce the dilution. Another effect of a rights offer is that the SP will drop, as has already happened this morning, as shareholders hedge their bets on the success of the offer as they are likely to be able to buy back in at a discounted price while investing elsewhere in the meantime.

I fully understand how a right issue works and the dilution this causes if a shareholder does not participate.

The company obviously needs money to get gold out of the ground. How do they achieve this without shareholders being diluted?

[Paint it Black]

I fully understand how a right issue works and the dilution this causes if a shareholder does not participate.

The company obviously needs money to get gold out of the ground. How do they achieve this without shareholders being diluted?

They either improve the SP by making credible progress which is bankable using the existing funds or negotiate capital on terms which effectively does not dilute and lower the SP.

[Felonius]

They either improve the SP by making credible progress which is bankable using the existing funds or negotiate capital on terms which effectively does not dilute and lower the SP.

Easier said than done I think.

This is an entirely new board with a great range of skills. Furthermore, those skills appear to be exactly what we need to overcome the challenges of creating a profitable goldmine.

I support NTL's plans to raise further capital at this stage. I will be more encouraged if the directors see fit to subscribe for significant parcels of shares in their own names.

[daveypnz]

Somewhat unrelated: I watched a show on discovery channel where Parker Schnabel was checking out gold mines in NZ. Reckons NZ has the most efficient gold mines in the world? Is that just spin for TV?