RE:RE:RE:RE:RE:RE:Private placement - provision of a reserve for acquisitionsThanks for posting. A couple of observations, M. mentions 2 or 3 drills on site. Either he does not follow the situation that closely or it is kind of a tell, in poker parlance. Interpret it the way you want, I would revalue my hand in such a situation.
Second, he mentions that this is good for Oroco as they will have the money to bring more drills on site. The last I had seen, they had more than enough money to have more drills on site. They had $ 18 million at the end of august, more than enough to sign contract with drillers. Did not see any NR on getting more drilling permits on the Sinaloa (North and South Zone) so it might be the real bottle neck to get more drills on site. Brasiles is more open but they need more info, I would gather, from the current drilling so they can get a drilling plan underway. Still do not understand why they had to buy that Brasiles drill. Thinking about it, mobilizing new drills to the site will take some time, I hope they started the process before this raise.
Third, he mentions institutional investors, not knowing if any participated but it would be a good thing if there was. Lets see. If you invert it however and there a no sizable institutional investor on this PP, is it a red flag ?
Fourth, I would bet that M. and his MCE flock did participate on this placement. This would explain the stock dropping as shares from prior placement are sold and replace with the new ones with the 4 month delay. Remember also seeing hints on another board. No problem, everybody can make money. However, as there is no disclosure, Mr. Ihateminer opinion as to this private placement has to be taken with some perspective,
FWIW I still own a bunch of this stock with a pretty low base. However, lets hope that management gives more clarity.
GLTA