november news, page-6

Thanks for the heads up Woy Woy

Just read the article. Sounds like they want to raise money so they can begin acquiring more assets ASAP. ME seems very eager to get everything moving.


The way I see it; if they did a small cap raising at half the planned amount. They would need to go back to the market again very soon (with plans for more licences in Indo and Mongolia and drilling) - investors would obviously price that in - I can see many saying there will probably be another iminent CR and the SP will stall again (like the affect of this CR). Compounded with what's happening in the Eurozone making investors less likely to invest in companies with low working capital. Which will in turn affect the SP of companies that are low in cash

As I said before. $20 million (after $8million purchase) will allow the company to;
- progress with Indonesia and acquire MORE Mongolian licenses promptly. Instead of waiting for cash - like how we are atm
- drilling and geophysics - JORC early next year
- sufficient working capital - I honestly would be uneasy investing in any company atm that doesn't have sufficient cash to see them through at least 12 months. And with all the plans to acquire more ground and to have JORC soon. Cash burn will be high

IMO, the company will be diluted but if they can add much more value than the capital raising amount, then it's certainly a win for shareholders in these uncertain times.

Anyway that's just me thinking out loud