Yes, the plan was to generate cash flow either through Santa Fe or Sutter to 1) show earnings and profit 2) establish cash flow so the lenders have some form of repayment for funding YGP

There's nothing else to it. The share dilution doesn't matter as long as you can earn more than the cost of raising those shares. If you don't earn more than the cost of your shares, than it matters because you are destroying shareholder value.