Recent PP Was going over the numbers last night after reviewing the news release. There will no doubt be a "short term" dilutive factor with the company, but over the longer term I personally like the deal. It definitely gives CHU some exposure with the backing of Wellington West, so they will surely "get out there" and sell the story. As others have stated on the forum here, these results are viable and the Burkina Faso area is quickly gaining attention with investors in the marketplace.
These companies in general, have traded at a discount to their peers in my opinion. Given the rising tensions in Africa right now, many investors have avoided the area. Like many other trends in the markets, buying because of political risk is generally a poor excuse for not investing over the long term. Channel looks to be a developing player in Burkina Faso, and with Wellington West reaching into their pockets @ .34 cents with a 2 year option to acquire additional shares @ .50 cents it should be a real "eye opener" to most traders by giving them a general idea what this company is worth and where they are headed. All and all a pretty impressive deal, that will allow CHU to continue their exploration in the area for the foreseeable future. I've already been a shareholder here for the past 18 months, but I thought I would pipe in and put forth my 2 cents worth...thumbs up!!!!
I expect this private placement to be fully subscribed
May future endeavors bring riches beyond your wildest dreams
Mrcashflow