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Koryx Copper Inc V.KRY

Alternate Symbol(s):  KRYXF

Koryx Copper Inc. is a Canadian copper development company focused on advancing the 100% owned, PEA-stage Haib Copper Project in Namibia whilst also building a portfolio of copper exploration licenses in Zambia. Haib is a large and advanced copper/molybdenum porphyry deposit in southern Namibia. The Haib Copper project, Exploration and Prospecting License 3140, is held by Haib Minerals (PTY) Ltd, a Namibian corporation fully held by the Company. It holds the option to acquire up to 80% of three large scale exploration licenses in the copper belt in Zambia. The licenses include Luanshya West project (LEL 23247), Chililabombwe project (LEL 23247), and Mpongwe project (LEL 23248). The licenses cover about 752 square kilometers in the Central African Copper belt. LEL 23247 is situated in the center of the Zambian Copper belt, which forms part of the Central African Copper belt. The three licenses sits on the same side of the Copperbelt, which hosts nine large copper mines.


TSXV:KRY - Post by User

Bullboard Posts
Comment by vialli1on Feb 03, 2011 11:13am
434 Views
Post# 18068617

RE: Financing

RE: Financinghi luberon,
It actually works slightly differently to what I think you imply by "based on the market". 
The brokers involved in marketing the deal to potential investors will "build a book" of interest/orders for the deal over a period of time. Investors will say what volume of the offer they would buy and at what price(s). Some may say "at strike" which means I want $xxx amount of the deal at any price. Some will have different levels of interest at different price points. 
The syndicate who are running the book will then decide at which price to execute the transaction. This is a balancing act (in consultation with the issuing company - in this case Dacha) to maximise the funds that can be raised for the issuer, but to do so at a price that should keep investors happy and encourage follow on buying in the market. If (and lets hope so) the issue is over-subscribed then they also decide who gets what % of the demand they had expressed. The eventual price at which the offering is done, could be at a premium or discount to the prevailing market price. Hence the use of the vague term "...in the context of the market".
If for some reason the market price got ripped up or knocked down in the few hours before the deal closes, it is unlikely that this would be reflected in the price at which the deal gets done. More likely that the price move was in response to whispers/leaks on how the book build has gone. In my experience, a lot more time and money gets spent by the syndicate banks behind a deal "stabilizing" the price after the issue than any attempt to influence the market price before.
For a niche offering like this I would expect more than ever that the success of the book build will drive the market price rather than the other way around. Given that the increased market cap of Dacha after this deal will broaden the company's potential investor base and ramp up Dacha's leverage, I would say there is every chance that the deal gets done at a premium to the current market price.
Cheers
Bullboard Posts