re: News: C@ to raise $28m to fund exploratio... Good point Woy, and I also think this is very common, GOR is one recent example that comes to mind, because they pushed the price from 55 cents to 35 cents to get a capital raising, eventually doing the raising at 32 cents. The institutions would not pay above 35 cents, I believe.
As for Draig, a consolidation of this magnitude on the ASX for a small cap that has not really drilled a hole in anger yet, is definitely a concern. It may turn out alright in the medium term.
Post consolidation it will probably list for around 1 dollar, but may struggle to maintain that price, given world events. If they had a JORC compliant resource it may have been easier.
On the up side though, they probably will purchase an Indonesian project in the new year, but how much of the available funds will that take up. Draig are going to be quickly looking for more money, which means another capital raising, probably in the first half of 2012, and probably after all the options are exercised in April (if they have purchased the Indonesian project by then).
They may have a prospective gold/copper tenement in Mongolia they could on-sell to raise a few funds.
The priority is obviously to get into TEEG, get drilling, and produce a JORC, then businesses/banks etc will more seriously consider requests for funding or JV (if the JORC is good).
Gw
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