Ann: Trading Halt , page-6

So this explains the price action over the past month (at least for me). Almost every gold stock getting slaughtered and yet PXG was going up, interesting?

Ok, we had some solid announcements, but nearly every other stock that released an announcement actually fell, and some folks are actually hoping their companies hold off on releasing any announcements, good or bad, for a while.

We also had someone hiking up the after hours auction price by 2 cents or more, for a period of 5 days, eg. we close at 24c, they bid for 100 shares at 26 in after hours auction, stock closes at 26c, interesting. I have been wondering why?

Anyway, now we know, a capital raising. I am interested to see who the broker is behind the handling of the capital raising and price movement.

This is a new company, and as such this is an important capital raising for retail investors, because it will indicate how they are going to be treated going forward.

If sophisticated investors are given stock at 20 cents with some options also thrown in, and the brokers get their fee, and the directors get options, but retail investors get nothing, then a precedent will have been set for this company. You will know how the directors of this new company intend to proceed, and you should act accordingly.

Sometimes retail investors are thrown a few scraps, let us see what transpires here. Will the directors do the decent thing? Let's hope so.

My intial bet is for a 20c capital raising to sophisticated investors only, which is too low. Perhaps we could live with 22c, but 25c would be most encouraging, even if they did not throw retail investors some scraps.

Currently have 55 million quoted shares and 38 million February 2012 options on issue.

One thing we have seen with almost every stock in the past month or so, is the price retreat reasonably quickly to the capital raising price, and most have gone below that price. My fear in the current climate is that if sophisticated investors are given 20 cent stock then this will fall to 18 cents (a good buy). If however the capital raising is at 25 cents, then this stock may just hold up.

Let's see if the directors of our new company have the Cojones to drive this stock, because their action at this first capital raising occasion will tell you a lot about their character and confidence.

Gw