I think the sept option all hang on the price of silver, I don't think the share placement will have such a large impact as you suggest.A little under 5 mill value with placement end date 6th July (only 3 weeks), any selling of current shares to finance take up of placement would be limited as 2008 options priced at 5c gives 9c value on shares (not taking into account other viables). If share price dropped a cent to 10c, conceivably so would options, bringing placement value also to 10c. Can't see much further downside (influenced by placement than that. Depending on parcel size, I would place another cent on cost to transfer to placement (including risk, etc), thus current share price is close to par.
And of course its all over red rover in 3 weeks.
I repeat, this is postive announcement: funding issues over in 3 weeks and little effect in sp other than to effective cap for three weeks.
The core issue is really the silver price. If it starts a sustained rise (which I believe Friday night's bounce off the apex signifies), resources available rises as does profits on existing mineable ozs. Contrary to suggestions by others, mineable ozs is 32 mill over 9 years, the first 3 years are just the most profitable by far. This changes dramtatically as the price rises. If silver rose to $25oz, earnings would be in the vacinity of 18cps. While some may scoff at 25oz silver, this is the think base of management. They see that molybdenum with favorable fundamental rose 800% recently, the mocking of silver comes from the fact that the fundamental have suggested it is a long time coming...
MMN
macmin silver ltd
