Reaction post NR about financing
When a company undertakes a PP financing at a lower than market price, in the majority of cases the price falls to or below that level. In this case that level is 12 cents. So what does it say when we (GUG) finished the trading day at 13.5 cents? This, when on FEB 22nd of this year we closed trading at 8.5 cents. Well, in my view, it says that the market is happy with this announcement and has confidence in management. The second and more important outcome of this is that Altius is completly confident that Gungnir has the goods and is willing to help finance them towards that end. In fact, they are confident enough to enter a royalty option agreement agreement for 250 k and to pay 8 million if they elect to exercise that agreement. And think about it. This is only 2% on the nickei and 1% on the gold. My bet is that they(Altius) will honor this agreement after seeing this year's drilling results. So stay with us longs. Good weekend all
WK