the capital raising is not unexpected given the level of exploration activity.
Pricing/quantum unknown by me, but I hope it is not too heavy at this stage-say around the $2m mark. That should be enough to keep the exploration going through to the next stage........which is.......buying a second hand plant etc (fingers crossed).
Likely market reaction will probably be mixed as usual in the current fickle climate.
But would management go (raise capital) at the moment with dud results expected from the present drilling programme-would hope not, but you never know. If the results are poor the MD would be shot by the placees. My guess would be for positive results as the logging of the chips suggest prospective mineralogy, now what is the grade? Another week or three for assays.
Management have given a pretty clear picture going forward in terms of drilling, scoping studies, discussions on plant Borthanna etc. The next six weeks will be very crucial in terms of generating value for the medium term.
Still not in there yet, (anal me is an investor rather than a trader), until one of the above goals is kicked-resource increase from current drilling or plant deal (maybe even the long shot in the Gawler), but it should rank as one of the better junior spec gold plays IMO.
Cheers,TAS
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