Hi Skier;

A bought deal is not financing from an institution where you pay interest. That is a loan. No bank will lend to an explorco that I've ever heard of unless they are much further along than we are.

Placement financing comes in basically 3 different forms.

open private placement - Only brokers and finders are paid commissions. A company announces it is seeking funds and publicizes the terms. Retail investors as well as various brokerages buy into the placement for their clients. This involves shares and warrants

Best efforts- Broker is paid in warrants and commssions. A brokerage convinces an explorco to give them exclusive rights to the total financing package on the explorco's behalf. The brokerage uses its connections to investors and uses it's "best efforts" to sell the placement. this involves shares and warrants

Bought deal- Brokerage is paid in warrants and commissions. A brokerage is so confident in the explorco that it guarrantees the total amount the explorco is seeking and then sells that placemnet after the funding has been provided by the investment banker.This involves shares and warrants although if the explorco has bullet proof results backed by industry standard documentation then the placement is sold at a discount to the 30 day average without a warrant (very rare).

The cost of, and the result of all three is pretty much the same. Although, often times an open private placement yields the explorco more money as they don't pay warrants and commissions to the brokers on direct sales, as the funding they get from retail investors who contact the company directly are commission free.

If I don't have this 100% correct I'm sure someone will indentify my error. Thanks in advance.

cheers..............Carry