It's a bit worrying when you see the share price continually trend downward, but copper is not in favour at the moment. Until the tides change, which might not be until next year, things will be tough at this end of the market... just look at other stocks in similar circumstances... HCH, MAT, SIR, just about every other junior explorer. Even producers such as SLR, NST who were even 3-4 times their value just last year. But AVB is in a good position with cheap extraction costs and located in a good mining friendly country to take advantage of any change in sentiment.
With regards to the finance, I wouldn't hold my breath for a little while yet. I used to work in corporate finance and it takes time for a deal this big to go through. The company just said that they were 'receiving indicative terms in the next few weeks'. Indicative terms are just the first step in the approval process. From experience, it could take up to 3 months for all due diligence to be accomplished before an approval and subsequent letters of offer are executed. We will most likely get an announcement on upgraded JORC before anything on finance, and a required level of JORC compliant resource may even be a precondition to approval, so it is all part of the process.
I'm going to ignore the ramblings of worried HC trader investors and an irrational market for the next few weeks... just know that financing of this manner is not a simple 'tick box' home loan transaction. It would be a pleasant surprise, but I wasn't expecting finance approval by the end of this month and the company certainly didn't say that. They just said they were receiving more indicative terms.
So everyone just sit back and know that this is a well situated resource company when the time comes for copper to come back into favour and the big players start to enter this end of the market again... whenever that may be.
AVB Price at posting:
5.9¢ Sentiment: Hold Disclosure: Held
