I think the raising was probably dragged along from an earlier time when the gold pull back wasn't thought to be going this deep. After all it's changed very quickly since Chump.
They should have been smart enough to pull it before it got as far as it did but may be it was out of their hands at that stage and in the hands of the merchant banks through agreements.
It matters little as most of the money in this stock has come in from the big end of town. They made the bed now they have to lie in it.
I see this opening up DCN to a take-over unless RW isn't already stitching up debt funding behind the scenes.
A $150 million equity raising for a junior explorer was always going to be hard in any market, I can't remember a raising that large at this end of town in all my years investing in ASX gold stories. I was always a proponent for developing the high grade Wsstralia Mine first with less Capex. A small "d" development model. That mine can produce steady and safe cash flow which could later be used to look at the syenite deposits. Modular plant designs could have been a better way to go.
In any case this story ain't dead, it has just begun and is one of the few success stories to emerge in the last year. Esh
DCN Price at posting:
$2.23 Sentiment: Hold Disclosure: Held
