After clicking on the link I went to the "transactions" tab and have a question about the following statement that I have attempted to put in bold...
Announced 06/15/10
0.00 for Silverado Gold Mines Ltd.
Private Placement
Silverado Gold Mines Ltd. (OTCBB: SLGL.F) announced a private placement of 30,946,667 units at $0.003 per unit for gross proceeds of $92,840 on June 15, 2010. Each unit consists of one share of common stock and one warrant exercisable for a period of one year for the purchase of one share of common stock at an exercise price of $0.01 per share. The securities will be issued to two accredited investors pursuant to Regulation D.
Does this mean that the investors that purchased the 30mil shares can purchase an additional 30mil at 0.01 per share (which is definately higher than the current share price). If this is the case, then perhaps somehow they expect the share price to go well above 0.01 so that the warrent is well worth it. Or am I misunderstanding a warrant?
Thank you in advance for your comments
