Hopefully for holders they will avoid a raising, however I am extremely doubtful that it is possible.
Historically BMN seems to like issuing cap raisings in the september quarter along with the AGM so I would fully expect to see something before the year is out.
They cant have more than a few million left from recollection and they generally dont like to get too low (in case the raising fails).
I would expect them to want to raise circa $5m (enough for another 12 or so months operations) - to do so I imagine the price will have to be quite low. I cant see RCF buying more unless they get given a steep discount to market as they have already taken a bath.
If they raise $5m @ 5c they will issue ~ 100,000,000 shares or 1/3 of the market cap - unless there are some decent sized U bulls out there that havent already been burnt, they may be forced to offer more for less.
I've always said I might have a look at BMN (or uranium in general) again in the single digits but I wont be doing it until at least the next cap raising has closed.
At the moment I think BMN is still overpriced for the risk - @ $600m PDN seems a better buy than BMN @ $20m - especially since it has several hundred mil worth of mine in operation.
If you imagine BMN diluted to the same extent (i.e. $700m to setup the mine), the 30:1 price differential wont be nearly as big.
BMN Price at posting:
6.8¢ Sentiment: None Disclosure: Not Held
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