The judge signed off on it the day before production started and creditors have until tomorrow to object which shouldn't happen as it's in all the creditors best interest to allow mining to continue in order to get paid.
Through the BK filing, there will be NO DILUTION. They owe $2 million and you're correct this has to be worked through first. The current contract they have is for $8 million at $87/ton by the end of the year. Once full production is hit (2000 tons/day), there will be excess which can be sold in the open market for the $137/ton current price.
It should take 2 months at full production to have the BK cleared.
These factors are a huge factor in the share price being so low as there ARE hurdles ahead. But their goals are reachable IMO and to find a producing miner for under .02 is absolutely amazing.
DYODD
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I have to add and emphasize that no dilution part of Joe's statement.
That is HUGE for the shareholders.
2mo./2mil is a very obtainable goal for them, and as these hurdles are cleared, I think share price will start to reflect the companies true worth.
would you guys mind explaining the "no dilution" part...exactly what does that mean? thanks.
Thanks for the additional info. I am still intrigued and I'm gonna do some more digging. Thanks!
Does this mean that the stock is being naked shorted?:
Cut and paste this link as one line:
http://www.bloomberg.com/apps/news?
pid=conewsstory&refer=conews&tkr=
QMNM:US&sid=aqPvIwuKlwcQ
SHO "fails" report.
It doesn't mean that it has to be naked shorting, but it probably is. Failure to deliver can occur on regular shorts (and longs), though it's usually not noticed if there's good volume/liquidity of that equity/security.
U.S. Securities and Exchange Commission stated in January 2008 that "fails-to-deliver can occur for a number of reasons on both long and short sales. Therefore, fails-to-deliver are not necessarily the result of short selling, and are not evidence of abusive short selling or 'naked' short selling."
Basically, that 0.5% (from the article on Bloomberg) is where the SEC is supposed to raise their eyebrow. Honestly, I don't think they watch it at all...
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