RMX 0.00% 0.1¢ red mountain mining limited

Ann: Corporate Presentation , page-3

  1. 2,932 Posts.
    This preso confirms exactly what I said last night.

    This a great result and will see the SP head back towards 3c over the next week.

    Here is why.

    There has been an insatiable demand for this stock for the 4 days leading up to the halt with over $15 million in shares traded (busiest day was 9 jan with $7.5mill traded with a vwap of 3c).

    Management have been very smart and only done a very small placement (ie. minimal dilution), just enough cash to let them drill a few holes to get some meaningful results to back up the high grade trench samples.

    No current shareholders would be foolish enough to sell now in order to buy more at a SPP price as the SPP is for such a small amount, its going to be heavily over subscribed and each shareholder will be lucky to get a few thousand worth of shares from this right issue.

    This SPP is nothing more than a token offering to allow current shareholders to top up before the real drill results flow in.

    The $1 mill placement to sophs was also for a relatively small amount and imo, wont result in any downward sale pressure.

    Also, sophs are not in the habit of handing over their cash unless they are confident it’s a good investment.

    Patersons offering to underwrite the June 2014 oppies is also a very good sign of faith. They obviously want to try and get their hands on as much cheap stock as possible.

    So don’t be fooled by any attempted short term manipulation of SP.

    RMX is going places

    Happy days ahead !
 
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