As far as I am aware, private placements involve an extra share issue. Most of the money raised by this company for their venture into Garden Hill was through private placement. Very little was borrowed. A lot of people bought in then, and subsequently lost a lot of money. CIVC's reputation in Newfoundland suffered as a result. When PDI came on the scene and regained the rights and licences, CIVC tried a pp, but I think they had a lot of difficulty getting it filled.

I suspect they might choose to steer clear of this method of raising cash this time around, but who knows. They might feel confident enough to try once more. On the other hand, say the well cost 15million, then the recent 0.5% added to CIVC's interest would involve them in an extra $75,000 cash input. That is not a great deal of money when compared with the total cost, which indicates to me that if there is a shortage of cash it doesn't amount to a lot. They might be able to go ahead with the cash at their disposal.

As there are a lot of worries about the number of shares outstanding already, I would expect CIVC will be circumspect about issuing any more, and I certainly would prefer not to see any further dilution.

I'm just thinking out loud, on this, as you will appreciate.

Regards

Dunnock