in the prospectus jsut released, the company claims that about $360,000 will be spent on exploration. $360,000 pays the cost of about 36 holes (rough guide, $10,000 per 100m hole). the big question is, "how much drilling will be done??", as each time one of the consulting geologists wanders into the office, and looks at a few maps, then that would cost about $1000 per day. each sample will cost between $10 and $15 to asay (depends on number of minerals being assayed for). Native title clearance always costs a few dollars. watso cannot be bothered to see how many holes gda drilled during the past year, but it would not have been any where near 36, so one wonders how many holes the company is planning on doing with the capital raising.
the new applicatons in the pilbara, are still applications, but upon grant, the company would be commited to exploration expenditure of about $3/4m per annum on the leases (watso always happy to be corrected). This will give shareholders a great incentive to keep on contributing
sadly, the latest capital raising will do very little. by sleight of hand, watso thinks that the capital raising is really an issue at 2c (as watso previously suggested would be the issue price), with a free option. in effect, the issue is in two stages, as the initial 1c issue is nicely priced to attract shareholders, who might not like the idea of paying 2c - and the piggy back option will entice holders to cough up an extra cent, by the end of may, as there could be a reasonable expectation that the shares might still be trading above 1c.
watso seems to think that the company will need new funding by the end of march, but the piggy back options expire at the end of may. Do not be surprised, if the company is in the market for more funding before the end of may.
does anybody recall the exploration alliance with st barbara????. from memory, st brabara has till the end of this year, to decide if they will exercise the option, to buy back into the relevant parker range tenements. watso very much doubts that sbm will exercise the option, but if they do, then gda could be worth a punt. However, if sbm do not exercise, then gda have the problem that they might have a few oz (and not too many), but they might have problems getting the ore treated. sbm could be in the position where they could buy any small deposit that gda find, for a song.
sadly it looks like only non stock holders (watso) who have the time to post on this stock, as stock holders seem to be too busy to find the time to post about this great opportunity to average down.
watso recalls posts that claimed that watso would be silenced, because the quality of the assets of gda were such, that the share price would head north. watso has been calling the present scenario since the start of the year, and it seems that the holders , who previously mocked watso, have gone into hibernation. for those loyal shareholders, gda will provide a few opportunities during the coming year, to contribute more funds, and another consolidation in about a years time.
what a joke, one of fatstocks posts earlier on in the year, claimed that the consolidation would be good for the company - which of course watso disputed. the first issue after a 1 for ten consolidation is at 1c. most of the present shareholders, who are long term holders (no doubt because they have been locked in), are down about 95% on this stock. If the likes of kinghadi, who might still in the stock, and who abused watso for his posts, where he bent over backwards to justify his call on this stock, and if they have lost money - then they deserve it.
for fatstocks, he has made it very clear that he does not apreciate watso making posts on this stock, then it is clear, that he has cost some posters money. maybe fatstocks will learn a lesson, and that being that non stock holders can provide a balanced view. watso does not hold the stock, and does not care what happens, but he does find the time to counter the rubbish of the rampers - oh where is fatstocks??????????????
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