Key Facts
Immediate dilution = new shares issued ÷ (existing shares + new shares)
Warrants create potential future dilution when exercised
Bought deals and private placements both dilute
Flow-through shares often carry a premium but still dilute
What to check
How many new shares are being issued?
What is the current share count?
How many warrants are attached and at what strike?
What is the use of proceeds?
Are insiders participating?
Worked example
100 million shares outstanding. Raise C$10 million at C$0.50 = 20 million new shares. Immediate dilution ≈ 16.7%. Half warrant on each unit adds up to 10 million potential future shares.
TL;DR
Count new shares and warrants. Check use of proceeds and insider participation. Dilution is certain; geological success is not.
Commodity Ape is information and commentary, not investment advice. Junior resource stocks are high risk and can lose most or all of their value. Do your own work.