ALO about to turn the corner in my view... With warrants expiring Oct 19th, and none of the 1M warrants exercised prior to June 30th, we have seen a lot of selling pressure the past 3.5 months. My view is trading patterns should return to normal and that this current level is an opportunity provided by the warrant situation. After these are exercised, it will be 8 months before we are in another warrant situation, but the price must be well above $8 for those warrants to be exercised with meaningful value (considering strike price + cost of warrants on the market)...
Additionally, as intowin indicated before, news should be plentiful over the next few months, including drilling, perhaps debt financing, and then later the FS and contruction decision (which is already made imo)...
I see Oct as the last stop in the $5's -> moving steadily up to a more reasonable valuation...
ALIO GOLD INC.
(Formerly Timmins Gold Corp.)
NOTES TO THE CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2017
WARRANT LIABILITY (continued)
b)
Private placement
On October 19, 2015, in connection with a C$6,000 ($4,616) non-brokered private placement with Goldcorp, the Company issued 1,000,000 share purchase warrants. Each share purchase warrant is exercisable for one common share of the Company
at a price of C$3.50($2.70) per share for a term of twenty-four months. Following the eleven - month anniversary date, at
the election of the Company, the share purchase warrants would be subject to an accelerated cancellation period of ten days if the Company’s closing shareprice meets or exceeds C$6.00 per share for a period of twenty consecutive days.
Should the Company elect to cancel the warrants, payment to the warrant holder would be required in the amount of the difference between the exercise price and the five-day volume weighted average share price for each warrant cancelled.
As at June 30, 2017,and December 31, 2016,there were 1,000,000 of these share purchase warrants outstanding.share purchase warrants outstanding