RE: Goldfields ups its stake in Goldquest"Is this a good sign that Goldfields did indeed exercise these stocks options? Was there timing issues involved? Does anyone have a little bit of background information on these options?"
One can take from it what they will, but IMHO it is a great sign. First off, they have until August 4 to exercise these warrants, so if they were uncertain about the quality of the results, they would have probably waited a bit to exercise them and wait for further results to come out. Secondly, you have to consider that when these majors invest in junior companies, they are not looking for a few hundred thousand dollars on a quick flip, they are looking to get a position in what could potentially be a great discovery. As has been pointed out before a few times on this board, management always had a sense that they were on to something good with this property which is why they held on to a 100% interest, as opposed to vending out partial interests in their other properties. At the end of the day, it is not a huge investment for GFI, but I think it is a confirmation that we are potentially on to something good. Cheers.