I guess everyone saw that David Slager (Regals Mgmt) bot another 45mm shares at 5 cents each. I believe this is part of the 150mm share placement announced last month which took the share count up to 399mm, of which Slager owns 115mm or 29%, making him the largest shareholder. The next largest shareholders are Gutnik and his wife, who own or control 76mm shares, or 19%. It will be interesting to see who bought the other 105mm shares. Have they actually been sold yet?

I believe Slager is friendly with Gutnik so I don't think he will take control of the company, but presumably he will be more involved to make sure the company stops pissing away his money. The company is asking shareholders to approve an increase in the maximum number of common shares to 1.25 BILLION from the current 400mm cap. Talk about dilution. Even if they manage to issue another 850mm shares at 5 cents it will only raise $42.5mm, hardly enough to last a year at the rate this company eats through money. Even David Slager would have to think twice before tossing another $42mm into this money sink.

At least the company is staying alive for now, increasing the chances that they can find a deep pocketed partner to help them develop the mine and start shipping some rock. The alternative would be bankruptcy and a share price of zero. But seriously, with a share count of 1.25 BILLION there probably is not too much upside even in the best scenarios.

www.lgdi.net/resources/i/docs/Press%20Releases/Schedule_14A_Definitive_13022013.pdf