I just read the whole shelf registration. Without sugar coating it, it is a dilution. This is somewhat common and I have been through this about 10-15 times with other securities I have held over the past 10 years. No need to panic yet (but be sure the market will tomorrow). As stated in the F-10, it is not effective yet. It will be effective after the filing of the next amendment. They DON'T HAVE TO issue the new shares...but, upon the filing of the AMENDMENT form, they will have 25 months to issue them. So they could issue up to 300mill worth or zero. The F-10 gives them the option to do as the like for the next 25 months.
Now the purpose of why PAL is doing this...the F-10 specifically states, "the Company anticipates using the net proceeds received from the sale of Securities for exploration and development expenditures at the Lac des Iles mine and to fund exploration and development expenditures at other properties, and for general corporate purposes, which may potentially include future acquisitions. It is anticipated that the Company will invest funds that it does not immediately require in investment grade income securities or short-term marketable securities." Not bad. They are raising money via dilution to invest more capital into Lac des lles and future acquisitions. We would all like for the company to do this through company PROFIT but it's a tough economy and looks like they need to make this move now, so they are raising it by equity financing.
Let's see how the market reacts tomorrow. My guess is closing at 90 cents tomorrow but back up to a buck or 1.10 by Friday. I'd buy at 90 cents or below tomorrow.
Here is a homework assignment for you ... find a junior miner without a shelf registration ... it does not mean dilution ... if they were intending to dilute they would not have done a shelf registration ... this was simply a CFO to-do item
Can someone attest that this poster (blueskydiving) is not a pumper so I'm not wasting my time. I OWN A TON SHARES IN THIS. I'm not here to bash. But, this is, IF IMPLEMENTED, a dilution. They will issue 300mill worth of shares via new equity financing. This is stock financing 101 kid. This type of thing is not a simple CFO to do item.
Why don't you read the part of the F-10 that says it covers "25 months" ... so, 25 months from the last F-10 for a $300 million shelf registration is Jan 2010 has expired ... the new F-10 starts a new period ... it is simply an item on the CFO's list of things to accomplish before he leaves in early January ... it means absolutely nothing ... so, anyone pretending it does is either clueless or has poor intentions