institution game playing - silver credits too, page-11

kwehrend-

Miningnut has indicated Anvil is negotiating with Congo Government to take over a larger mine owned and run by the government. (or not run by government?)

To do this Anvil will purchase a majority ownership - get the mine running efficiently - bank the profits.
All there ready to go!

To fast forward this operation Anvil need a large parcel of money.
To raise the money Miningnut indicated a rights issue is on the way.
Meaning that you will have the right to buy one share of Anvil for (say) every five shares you hold for a price well below share price as traded.
Say 15 cents per share for example.
Anvil receives cash - you receive the additional shares at a large discount - total of Anvil shares increases accordingly.
Anvil purchases Gecamine holding with this cash.

However it appears that miningnut is now indicating that Anvil might simply go to Canadian institutions and allocate millions of shares to them at a price based on previous market price discounted.

Now that the indication from miningnut is that the rights issue may not be certain the present trading makes more sense.
If institutions are expecting to be offered an allocation of shares well below market (as usual and accepted practice) then the institutions know it is in their interests to peg back Anvil share price prior to issue announcement and subsequent allocation.

My guess is that trading now (pushing share price down) signals share issue to Canada institutions is the way.

This is probably faster and easier than offering a rights issue.

Rights issue is best for shareholders.
Share issue to institutions while not so positive to share holders is still a big plus.

While the number of shares on issue increases - increased profits will more than make up for that.

Anvil management own large holdings.
They would not make a decision that would not be strongly positive and in their interest.

So now my guess is ---
1. Dumping will keep share price down short term.
2. Gecamine announcement and issue of millions of shares to Canadian institutions at whatever price per share (well below subdued market price) will be announced.
3. Anvil share price will move to record high.

Those holding should continue to accumulate.
That's how I see it anyhow!

Cheers

NT