TSXV:SLX.P - Post by User
Post by
TrueBullon Feb 14, 2012 3:07pm
574 Views
Post# 19533158
Read this....it will save you $$
Read this....it will save you $$ I like SLX too. but, it might be prudent to hold off on more purchases until may, when the warrants come due. ALL 18 MILLION OF THEM!!!! @.32. we all know about reverting to the mean right?
check this...
Next up Silvermex Resources SLX.TO
I had a chance to chat with Chat with Duane Nelson, CEO of Silvermex Resources, a couple of issues that I wanted to raise was the 18 million warrants that are due in May this year. These warrants have an exercise price of
.32/share and are a serious overhang in the market. Duane recognized my concern and feels that they are in good hands and will probably not hit the market (lets be honest here, of course he said this). Management does know who owns these warrants as they have the subscription agreements and know who they have drawn up treasury orders for.
An interesting subject of note during the day was the announcement that Pan American Silver takeover of Minefinders. This led me to my next question as to the possibility of another cash rich silver mining company eying up Silvermex. Duane was quite candid with me and said the game plan was to groom and structure Silvermex to make it more attractive. I will leave that open to interpretation.
Duane also said a few funds were looking for large blocks of stock so maybe some of the upcoming warrants will be exercised and crossed in the market. Keep an eye out for large block trades as a bullish sign. Like all silver mining companies expect volatile trading patterns that coincide with the spot price of silver with the potential of being taken over.