Perrygl, hi, are they not concerned with oil in the US ? Anything's possible eh.. doubt it though for CDG
AverageJoe there seems to have gotten lost on wrong threads..
Semillon - yup, spot on. I think though, that it depends on how the company and their advisors view their chances of raising whatever value of funding as to how much, or if at all, discount might be offered. I've actually seen an asx company (on my watchlist) do a cr at something like a +20% Premium in the past few days believe it or not..
When BCI took their 5% stake in CDG last year, it was at the market price of that week (62c) but they added a small premium to further shares for Instos and Sophisticates etc..
I'm guesstimating that they can only offer around 10m shares this time without needing shareholder approval which would reap around $1.35M. BCI could easily do that and bring their average down at the same time.
Yeah, the guessing game eh... WTF do they need the money for when they already agreed a $10M facility recently ?
Working Capital ? likely, $1.75m going out v $0.85m cash on hand but the Baycrest facility is there for that?
ILR plant-remember they were figuring this would be a better fit than the CIL they just got a licence for? Possible
Acquisition ? unlikely - they already trimmed ops back
JV with Ashanti Gold/Kinross to get cracking on the Pantera Project just south of the Serra Grande mine, see location on the 18th June ann.? worth a consideration..
As you say... Guessing Game. We'll see soon enough GLA
ps - wonder if the Mods for HC might put an additional line into the 'Sentiment' dropdown box Title to be selected in TH situations..
'Hold - Got No Freaking Choice Mate'
CDG Price at posting:
15.5¢ Sentiment: Hold Disclosure: Held
