YNG: Gets financing deal done
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.