Some thoughts on Aurania Res. This week´s financing came less than a month after the last round of money raising, at a three year low, not counting the march 2020 anomaly. Existing shareholders were ambushed, stabbed in the back, damn them all. The share price was killed and market cap went up significantly over the last year in which Aurania did a total of four financings, none of which are presently in the money.
I can´t see how anybody would buy into Aurania from here on before a major discovery, not what they call “mineralization”, “new target”, or our first discovery”. The dilution will hamper a rise of the share price without a major drill success, which I do not see anytime soon. Nothing in their drill pipeline indicates to me that they have a concrete idea of where to find high grade and at what depth, if it at all exists. So far all they have are geochemical and geophysical anomalies, not significant mineralizations, and much less can they prove economic concentrations of any kind.
Their “scout drilling” is, at the end of the day, not much more than poking around to test theories, that will of course show them how to “vector in” on the high grade stuff. In fact, they may be years away from hitting economic grades, not considering a lucky shot, which they badly need at this point.
Future financings will be necessary to keep the company operating, but will have to be done at ever decreasing share prices, artificially increasing market cap while further diluting the share count. At this point Keith Barron will have to convince a new bunch of investors that his company is worth their money, as it seems to me that his former investors have slowly given up on the company over the last 12 months or so, due to a string of disappointing press releases. This process may well have begun with this week´s fund raiser. To their surprise, this week´s investors will also see the share price go lower and lower, as there is no reason to invest in Aurania now except for pure hopium. A wait and see attitude is the proper stance at this time. Unfortunately, at this point, Aurania has become just another money pit.