Ridiculous talk going on,Question: why would insto investors who...

Ridiculous talk going on,

Question: why would insto investors who heavily over subscribe to the placement at 85c sell the shares a day after they receive them (and more so at a loss).

Logic would dictate that such an offer would be taken up by insto's to secure an investment in the company for a longer term than one day.

Any selling on the market would be the every day traders selling/buying, the others would hold onto them for the same reasons they bought them in the first place, investment, mid to longer term (production is just around the corner).

The $30m strengthens our cash position, and if you look around currently there are 3 deals going on (that im aware of) in the gold sector:

GDO - Takeover of RAND and then a Chinese takeover of GDO for minimum 60-70%

SBM - CQT - CAH - Merger/JV buying a couple NCM mines to become a top gold producer 'big player'

FML - Takeover of CRE, to push it past 230,000oz p/a and become a top5 producer next year.

So maybe there might be something going on behind closed doors... Eating up a undervalued developer also on the verge of production could be the way to go at the moment...