RE: RE: RE: RE: News ...financing closedDear Paulindoon,
Unfortunately, your idea is base on an hypothesis that does not seem to work under present market conditions. Just look at the market reaction to the results from the EPl 3403 sampling. The results were very good, and yet all the positive movement was demolish by traders that shorted the stock and scared retails investors into panic when the stock did not break out more.
So for you to assume that the management should have waited for better timing in order to get a better price then 7 cents is not really realistic, when the shares have been trading in range of 5.5 C to 6.5 C during the last 2 months.
Let me expand on the subject of the press release and other point you raised. The press release you refer to was actually very clear in stating that the analysis to be done was only going to help estimate the potential size of the 3 discovered deposit and plan the next exploration step. No information about the size of a potential resources, nothing...
In order to get there, the Corporation will need to do a least one geophysical programme and another sampling programme.
So the situation become a game of chicken and egg.. How can you believe that they could finance higher when they will announce the next program? How can they announce a program if cannot fund it?
Afri-Can is the business of developing mining projects and that business cannot be base on management trying to do market timing, because it is impossible to time exploration results to market cycle.
Afri-Can has some exploration work they need to do and in order for them to be able to do it they need to fund it.
Yes, the market price is low but all the markets are bad at the moment, that is just a fact of life.
What happens if when they announce the "so called analysis” and the program planning and that at that time the market is even worst then it is now?
Managing a Company implies that you have to in action when things have to be done and not consider the market to make decisions because it can turn sour. Imagine that they would have waited and not succeed? Then you would have a very good reason to moan about the salaries.
For my part it is very simple. They have to move forward and this is what they do.
Yes, I would prefer that they get a better price but at the end, I mostly prefer that they do it when it has to be done and move the business forward. This is what I expect from management and this is what they showed to me with this financing and must I remind you...at premium on the market.