placement - any opinions?

Anyone care to offer an opinion on the likely impact of Golden State's announcement that it has made a successful private placement?

The company has issued 17.9m shares @ .024 cents and an equivalent number of options exercisable at 10 cents by June 2007. The market may have anticipated the move judging by the sell-down of the past few days so the dilution effect appears to have already been factored in. The price is actually up marginally at .04 cents following the announcement.

The big positive IMO is that the cash raised ($447k) should enable Leonora and GDN's other exciting tenements to be further explored, with the likelihood of more positive drill results to come.

Longer term holders may welcome the announcement as establishing a funds platform for future growth. My view is that if it is followed fairly swiftly by further drill results the SP will not retrace much (God knows it was already cheap!), but in the absence of further news it may fall back.

Time will tell. My view of the stock as a speccie with terrific prospects remains unchanged. In fact if it retraces much further I might start buying again. Any other views out there?

R/Gupper