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Rathdowney Resources Ltd V.RTH

Alternate Symbol(s):  RATHF

Rathdowney Resources Ltd. is a Canadian company, which is primarily focused on developing and permitting its 100%-owned Olza zinc-lead-silver development project in Poland. The Olza zinc-lead-silver development project is located in the Upper Silesian Mining District of Poland, historical drilling indicated the presence of extensive Mississippi Valley-Type zinc-lead deposits in the project area. Project Olza is located north of the nearby Pomerzany Mine. The Company intends to advance project evaluation and development planning and to support permitting as outlined for projects in Poland.


TSXV:RTH - Post by User

Bullboard Posts
Comment by edxon Jun 21, 2013 11:42am
303 Views
Post# 21555043

RE: RE: RE: NR today

RE: RE: RE: NR today

Their resource might be viable, but HTR is out of cash, out of equity and out of options. Not to mention all the wasted money on the Delta project. I don't even think anyone is willing to pick up their resource for pennies on the dollar - diversified resources like that are especially toxic in a bearish global commodity market... they usually only get interest in broad commodity bull markets and they almost always have trouble garnering interest and funding because potential suitors are interested in only one, maybe two of their minerals. Personally I don't think HTR has a shot of avoiding insolvency in today's economic climate. If they fire everybody and just sit on the resource until the global economy returns to a boom cycle (who knows how long that will be) shareholders might not be totally wiped out.

The only people who seem to still be buying HTR both post on the HTR Stockhouse forum. I kind of worry when I read some of their posts... they are in so deep and for so long they feel they have no choice but to keep averaging all the way down to 5 cents from the buck fifty range. If I ever get like that, shoot me.

I don't think an equity raise will be an issue for RTH, it's just a question of how much dilution. As for the buying and selling... I haven't seen the big seller as a big buyer in the past year and a half (granted I don't track these things to that degree so this is anecdotal) so if I had to take a guess it's an IPO buyer or early investor moving on. As for the buyer, Instinet has replaced UBS in taking everything for sale at 40 cents and they only cater to institutional level clients.

Of course, buyers and sellers can (and often do) use multiple brokerages, especially if they have a lot of money and anybody selling a million shares of anything probably has a lot of money.

If I had to craft a desirable scenario of who is buying, it's Teck wanting to pick up 9.9% of the company on the cheap before an equity raise to bring their stake to 19.9%. They are the natural suitor here and we know they are both aware of and have some degree of interest in this project as one of the world's largest zinc miners. They also have a committed interest in European zinc and they are sitting on piles of cash.

Of course, that's quite a reach based on actual available evidence and it could just be some managed money that's seeing the same undervalued, low-risk project as we are with a bullish long-term outlook. Either way, if we assume that we aren't seeing the same buyer using multiple brokers, there are at least 3 buyers in the past year that have accumulated big blocks of shares (millions in some cases), which is always reassuring for little retail investors like us.

Bullboard Posts