What Comes Next?Monday, July 16th is the day the financing is scheduled to close. Then, or soon after we should learn who took the 10.1 million share piece. We may also learn the identity of the fund in Europe that took a new position of 2.5 million shares.
Both are positive developments. Wouldn't it be interesting if the 10.1 million is a new player, in for about 3.2%? It doesn't seem likely the fund in Europe will be that player, since mutual funds need to be able to sell unrestricted. That probably applies to other funds as well, unless the $2,020,000 would be so insignificant, that a 4 month sell restriction would be viewed as a non issue. Doubtful.
That takes us to non funds, or most likely miners. I think the size of the placement was intentionally kept to just large enough to meet needs. It tells us management thinks they'll be able to raise capital at a higher price in the near future.
Also worth noting is that the warrants in the placement allow purchase of a share of stock for a period of 24 months, at $CA .30, or 50% higher than the $.20 price of the placement. That's 10 1/2 cents above today's close. I haven't tracked it, but we've probably had outstanding warrants expire unexercised over the past year.
Let's consider Goldcorp as a potential investor. Certainly possible, but the GSV shares they added were bought in the open market. No sign of that here. We're talking about the private placement. They just bought 5.9 million shares of Allegiant's 12.6 million share offering for a 9.99% stake, for $CA 2.07 million. That profile is not very similar to NUG's placement, but it would be a foot in the door if they buy here. I say they didn't.
Goldcorp's CEO had spoken about solidifying investments in Nevada. Prior to Goldcorp, Allegiant had Columbus Gold owning 11%, so Goldcorp comes in as a rough equal. His two investments accomplish that. Buying 3.2% here against Oceana & Barrick does little for Goldcorp.
Now, for $2,020,000 Barrick can keep Goldcorp's foot out of the door, and keep the door closed to outsiders beyond Goldcorp. Pocket change, why wouldn't they? NUG's shares are a bargain, they know that.
For $2 million, Barrick can keep their sweetheart [NUG] from dating newcomers. They had to allow Oceana to participate, and we're pretty sure Oceana isn't taking the 10.1 million units.
Sometimes, peering in a keyhole, you get a completely wrong picture. Here, Barrick writes the check on Monday. Make sense?
Here's a hot tip [off topic]
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