Share Price UndervaluedFinancing Oversubscribed
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I'm sure the investors who took part in this financing (see below) know the potential of TRR and have put their money down with the expectation of substantial profits.
Considering the current price is very close to the private placement price I expect this stock is still considerably undervalued.
Also worth noting is the exercise price of the warrants. Participants in private placements don't usually take a position unless the warrants hold great value.
With the current drilling program underway I would be very surprised to see this stock stay in this range for much longer.
Another very positive point is the presence and tenacity of the basher/bashers (it's hard to tell how many since they use so many aliases).
This bashing activity could very well be directed and funded by those who were unable to get in on the private placement. Since it was oversubscribed one can only come to the conclusion that not all who wanted were able to get in. Bashing the price down and buying on the open market is their only option to grab some shares before it takes off.
I expect this stock to be, at the very least, an easy double within the next couple of months. I consider this to be a conservative outlook. Further price adjustments will be determined by the results of the massive drill program currently underway.
IMHO
Old
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Following are some excerpts from the news release:
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Source CCNMatthews
Date 11/14/2006
Time 04:08:28 PM
Company TRELAWNEY RESOURCES INC.
Title Trelawney Financing Oversubscribed at $1.78 Million
Notable items:
Trelawney Financing Oversubscribed at $1.78 Million
TORONTO, ONTARIO--(CCNMatthews - Nov. 14, 2006) - Trelawney Resources Inc. (TSX
VENTURE:TRR) is pleased to announce the completion of a $1,781,100 non-brokered
private placement through the sale of 9,627,567 flow-through units at $0.185
per unit. The units were sold to MineralFields Group which acquired 7,567,566
units, Bolder Investment Partners, Ltd. which acquired 1,000,000 units and
individual investors that acquired the balance. Each unit consists of one
flow-through common share and one common share purchase warrant and each
warrant is exercisable into one common share at $0.40 in the first 12 months
and at $0.60 in the following 12 months. If Trelawney shares trade at either
$0.40 or $0.60 for 10 consecutive business days in the 12 month period in
question, the Company may accelerate the expiry date of the warrants by giving
notice to the holders that the warrants will expire on the 30th day after
notice has been given……
The proceeds of the financing will be used for drilling and exploration
programs on the Company's Dorset, Mishi, and Mishibishu Lake gold properties 50
kilometres northwest of Wawa, Ontario…
Trelawney is the largest land holder in the entire mining camp…
Trelawney has assembled the largest land package in this area since the Hemlo
staking rush in the 1980s. The consolidated property contains over 48 known
gold occurrences attesting to the potential of the Mishibishu greenstone belt…
Shares issued: 69,930,189…
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