RE: Too Cheap???Godman are you back in now?
It's really hard to say as although it's a proven resource there is nothing else there....need to create a whole mine from scratch, this was not going to happen with CMK..IMO.
I think they got a fair value for the resource but more importantly I believe their non-core assets were never priced into the stock in the first place, so by adding $40,000,000 to cash on the balance sheet with an unused CL of $50M, so $100M on top of the $86 offering you have a company in final ramp up on their main resource play......with lots of cash and no debt to make it through the troubled times.
Not that I hope we are going to see another 2008...but this reminds me of GCE when they did an issue the year before the melt down and were sitting at $100 million and no debt and were able to ride out the storm during the downturn, then came back to buy all the new trucks, needed equipment and still have no debt....stock went from $1 or even a little lower during the crash to come back to $10 when WTN got purchased during the hype.
I believe this is a very good move for CMK, they add cash to the balance sheet and open a CL (unused to-date) $100,000,000 and no equity dilution......hats off this time around IMO!