27.6 million flow-though shares @ 12.5 cents were issued in last PP. 12 million to MineralFields and the remaining 15.6 million to 15 or so 'institutional investors'. Even if you assume MineralFields is in this for the long haul and will not sell there are still 15.6 million issued to ... who knows?

After-tax cost of 12.5 cent flow-throughs is about 8 cents... maybe a little less? Explains wall at 8 cents IMO. Sell what you can (maybe everything) at break-even and get to keep warrants @ 20 cents for free. Sounds like a good deal to me. I am sure everyone here would have jumped at that opportunity. Myself included. Sure there is a '4-month hold' that doesn't expire until February 18, 2009 but what's stopping PP participants from selling their shares short at 8 cents knowing that they have access to 12.5 cent flow-throughs on the 18th to clear their position?

Plus, even when we get through the cheap flow-throughs we will be hit with 16 million warrants (13.8 million to flow-through holders and 2.2 million to brokers) coming due at 20 cents. That's another whack of cheap paper to get through, especially in this market.

Apart from churning through all of this the only thing that might get us through in a hurry is some pretty extraordinary news... and I mean very extraordinary. With no drills even close to in the ground could be a while before any significant assays are reported. Channel and grab samples will not do it. Otherwise we sit and churn, hopefully.

Glad to get the money? Yes. At any cost? No. IMO insiders could have stepped up and at least participated in this PP. They did not. Disappointing IMO given market sentiment at the time. Would seem to me we will be trading in this range for quite some time. Comments? Just trying to figure out '8-cent wall'. Think I figured it out. Wish I hadn't.

red911

Sage Gold 27.6-million-share private placement

2008-11-04 16:10 ET - Private Placement

The TSX Venture Exchange has accepted for filing documentation with respect to a non-brokered private placement announced Oct. 24, 2008.

Shares: 27.6 million

Purchase price: 12.5 cents

Warrants: 13.8 million share purchase warrants to purchase 13.8 million shares

Warrant exercise price: 20 cents for a two-year period

Hidden placees: 15

Finders' fees: A total of $204,000, plus 2,176,000 warrants (each exercisable into one common share at a price of 20 cents for a two-year period) payable to Limited Market Dealer Inc., Barrington Capital Corp., Augen Capital Corp. and National Bank Financial.