RE: private placementWell Well So we get a 4 million private placement at 61 cents with warrants at 69 cents and what are we to think
I for one had figured on this and thought it would be a small one to tide them over until the 43-101 is out and they can raise lots more at much higher prices. Judging by the size and amount I would think this enough to take them till early November at the present burn rate by which time the 43-101 is out and share price is considerably higher and the warrants get exercised bringing in 5 but possibly 7 million dollars which carries them well into 2012 and then we get back tax credit money for 2010 which is at least 3-4 million so won`t see another financing again for along time. The June 30th date for the 43-101 release I do no believe as they now no longer have the money gun to their head and can wait as long as possible to include as much drill info as possible into the calculation which makes the most sense. Why spend all that money on Phase 3 and then not include all the results in a 43-101. They are not going to want to have to do a whole second calculation once all Phase 3 is in so why not wait. If you want to know when the release date is wait till an announcement about Phase 3 being completed add another 4-6 weeks for lab results and another 3-4 weeks for calculation and I think you are looking at early to mid September, which is still in plenty of time to trigger the 2010 warrants at 75 cents once the share price pops on the news. Wouldn`t the company want as many ounces as possible in the 43-101 so as to gain as much share appreciation as possible Make no mistake the 43-101 is all about driving the share price up as much as possible so that the next placement can be done at much higher prices. They will be looking for a minimum of $40-50 million on the next financing and would be nice to do it for only 10 million shares and no warrants. A 43-101 with 4+ million ounces and an open strike of over 2000 meters to the east and open in all directions with grades sure to increase by 30% once RC drills are brought in to drill for grade makes that kind of scenario entirely possible. That is assuming Osisko or some one else doesn`t pounce right after the 43-101 release and offer that $5 per share right then. It would probably be enough to scoop up this gem which is too bad as I think with that $40+ million worth of drilling this would be a $15-20 stock so they will be getting quite a deal! But at this point many GBB longs are tired and frustrated and $5 this fall would be enough to get them to part with their shares. All in my opinion but nonetheless a 10 bagger from todays prices. All the best to GBB longs and stay strong the payoff is coming!
Longrider