YNG announced the results of the warrant exercise and additional capital raise. The warrant exercise raised the capital management had initially planned but after some major hiccups. It definitely wasn’t a smooth ride for shareholders but the capital raised should get the company going on its operational plan. The company also sold 33M shares and 33M warrants to Deutsche Bank. Although I dislike companies selling shares when they are cheap, the potential 66M shares are small compared to the 900M shares O/S after the recent warrant exercise. Also, this is the price to pay for the 120M financing w/ Deutsche and the screw-up by Orifer. The company also is working on finalizing a 120M financing from Deutsche Bank through a Gold Forward sale.
We now have a company where the management has access to the capital needed to execute on its plan. The investment is now dependent on whether this management team can deliver on its short-term goals of 150K oz of production and future goals of increasing production to 400K oz.