Dilegent board with what seems to be a structured strategy to realise the maximum outcome. (resource)
How do you get there without being taken out at a cheap and nasty price?
I think it is a no brainer that a 3rd party of some sort will kick in the 15% which would (if my maths are correct) only provide approximately 2.2-2.5 million in funding at the current range. I would assume this third party would be beating the door down right now to secure the lot.
But will the company hold off until Snowdens says:- Hay guess what, you could mine the first 20,000,000 if you wanted too. (wishing) - This would raise the share price quite nicely to somewhere upwards of 35cents I should imagine, depending on how positive the report is. If this were the case they could quickly take upwards of $3million, which would help them prove up more resources, and in the mean time give them space to do a rights issue for the balance of funds they require.
I would not be suprised either way. But one thing is for sure. If you were a prospective party who new this was a seriously undervalued stock, you would rather increase your holdings in placements & rights issues at a lower price than forcing a valuation on the stock based on your take over aspirations. If someone wanted to take DNL over in the next few months then a valuation on their current resource and future cream would be needed, hence the price would be a lot higher.
I just hope they up the resource to its maximum value in as little time as possible (<1year) thereby allowing the shareholders to reap the full value of the asset.
DNL Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
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