All healthy speculation where only time will tell.
1) Huayou likely having a say in this. Remember some time back near the general meeting, they put their foot down on an issue and got their way. It really does seem like they want control here.
2) The 295m record hole announcement just prior to this seems like classic Klaus choreography for maximum effect if people remember how the first 7 drill holes went. Add in Langford's recent breakdown of possible directions for AVZ.
3) AVZ shouldn't needing funds for drilling or anything we know about. December quarterly (released 31st of Jan....24 days ago) shows AVZ had $13.3 mil and estimated that the next quarter would require $6.55 mil. The extra drill rig is in the 8th Jan activity report, so that cost would be factored into the next quarter cost estimate. So AVZ should have about $6-7mil left at the end of March. This does not even include option conversion. Additionally, the question has already been raised as to the timing. Why raise now when you don't need it and the SP is expected to appreciate with 200m+ drilling intercepts coming in thick and fast soon?
So based on this, I suspect this isn't a simple cap raise for day to day expenses but more in the line with a strategic type investment like Huayou made last year. Perhaps something else but I'd be surprised if there wasn't something new next week.
AVZ Price at posting:
30.0¢ Sentiment: Buy Disclosure: Held
