RE:RE:New Press Release - NICKEL CREEK PLATINUM ANNOUNCES NON-BROKERED PRIVATE PLACEMENTA couple of observations:
1) The raise was done at current market prices, which is at least not a bad sign.
2) Electrum continues to backstop this company and as such is being given the opportunity to take the lion's share of the private placement. This benefits them as if they attempted to purchase the same amount of shares in the open marke it would push the share price much higher than the offering price of the private placement. This also keeps a damper on any public float as Electrum are strong hands.
3) Without seeing the specifics in the press release, my guess is that Electrum now owns about 40% of the company. I doubt they want to obtain 50% or more as they are in the business of managing a portfolio of resource stocks and not in actually running a day-to-day business. On the one hand, it is good that we have a strong financial backer who see the value of the Nickel Shaw project (as do I and other strong hands), however, on the other hand there does exist the risk that Electrum attempts to buy out retail on the cheap and then flip the company for its true value on the back end. I hope that does not happen, but we shall see. I'm optimistic that Electrum will, just like the rest of us, hang on for the ride and wait for the end of the ride (which is a future buyout).
PS Platinum and Palladium now both over $1k as the metal prices heat up!!