RE:RE:Dilution..!?Malton,
it's certainly disappointing that the Company was unable to pull the trigger on a financing at a $1.85 as oppossed to a +$2.00 handle. However, sometimes Company's have to take advantage of financing windows when they are available.
Let's try and answer your questions above on
1. Who is selling stock if this Company is worth $20 stock? I don't see this Company being $20 stock based on the fundamentals of the Bateman Project within the PEA. Perhaps that will chnage when we see the Feasibility Study. The only way I can see the Company getting to $20 would be through a large new discovery on their regional land package which is vast and under explored but it will take time. I did note they are raising C$5M in CEE which appears to be a good start for now. I would imagine when we get more details after the close of the financing it will be a phased approach. In my opinion the secret to success in making money in the junior gold sector is to know when to get in and when to get out. There must have been invetsors buying the stock a year ago at 60 cents. They've now trippled / quadrupuled their money and it would be reasonable to assume they may want to book profits or move it somewhere else more appealing. The restructing was done at C$1.33 four years ago which some accounts may have been sitting on and agin just wnat to book a 50% uplift. I think importantly for the sellers they appear to have buyers as the stock has steadily been moving. Not everyone has the nerve to ride the stock up in the junior sector. It can be high risk.
2. Insider participation: We don't know who participated and as I informed you several weeks ago Ogilvie the CEO has put C$750,000 of his own money in and never advertised that. It is only seen if you following the Sedi filings. I beleive they have 5 days to file.
Malton I think you have a real hate on for this Company (OK I get it you obviously lost pout big time the first time around) but I think it is clouding your judgement. The Company has spoken both on their Company website presentation and in interviews about potentially needing to raise +/- C$100M to put this Mine back into production. It would appear they just put the first C$50M in place. I don't agree with you on more dilution. We and the market knew they had to come to market to raise money we just didn't know when. Not sure why they came early ahead of FS but perhaps when the FS is out later thsi year it'll give us some direction. If the FS is robust I'd expect Ogilvie wanted to get a head start and begin working on critical path items ahead of the FS schedule. No doubt management have seen key elements of the FS and must be getting some confidence in its robustness. They openly admit on their Corporate Presentation it is 75% complete and that was two weeks ago.
Certainly dilution needs ot be minimized but another key point to try and work out is at what price do the analyst who follow this Company have them raisng money at. Eg if it's at C$1.00 p.s. and they raise money at C$2.00 p.s. in the analyst model half the number of shares are issued meaning that the NAV / Per Share just increased. We migfht just see analysts increasing their target price on this stock in the coming weeks once the financing closes (Press Release states 27th August close).
We can argue all day about the pros and cons of this Company and Project especially given the history, each investor needs to assess for themselves and make a decsion based on their own level of confidence and risk tolerance. Invest in what is right for them at the right price and get out at the right price for them. It's an individual choice and everyone has different reasons.
Cheers,
The Manic Miner