Minfinders recent announcement - whats a base prospectus?

[Whosthedaddy?]

Folks, can somebody enlighten me as to what a universal base shelf prospectus is.

 

Does this mean they could issue further shares and dilute the current share base?

 

Full announcement below............

 

 

November 21, 2008 – Vancouver, British Columbia – Minefinders Corporation Ltd. today reported that the company has filed a preliminary short form universal base shelf prospectus with the Securities Commissions in each of the provinces of Canada, except in the province of Quebec, and a corresponding registration statement on Form F-10 with the United States Securities and Exchange Commission.

 

These filings, when made final, will allow the company to make offerings of common shares, warrants to purchase common shares, share purchase contracts and subscription receipts (collectively, the "Securities") or any combination thereof up to an aggregate offering size of US$200,000,000 during the 25-month period that the final short form universal base shelf prospectus remains effective. Securities may be offered separately or together, in amounts, at prices and on terms to be determined based on market conditions at the time of sale and set forth in an accompanying shelf prospectus supplement. The net proceeds from the sale of the Securities, if any, is expected to be used to fund ongoing operating requirements, sustaining capital expenditures and development at the Dolores Mine, exploration activities, potential future acquisitions and for general corporate purposes.

 

A registration statement relating to these Securities has been filed with the United States Securities and Exchange Commission, but is not yet effective. These Securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor will there be any sale of these Securities in any state in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state.

[drbubb]

they need money

[AceofKY]

Yes, this is the regulatory paperwork needed to pull down an equity financing open to the public.

They do need cash as they are basically out of working cap & at their credit limit, but they don't need nearly $200MM. Dolores should be cash flow positive very soon.

I think Mark is getting his ducks in a row for an acquisition.

 

[Newbear]

Yes, this is the regulatory paperwork needed to pull down an equity financing open to the public.

They do need cash as they are basically out of working cap & at their credit limit, but they don't need nearly $200MM. Dolores should be cash flow positive very soon.

I think Mark is getting his ducks in a row for an acquisition.

 

Could be - he talks about why MFN is making this move in this interview (right at the end):

 

http://www.financialsense.com/fsn/main.html