Agree (although personally hoping they show their cards before then). Announcement has just proven that Chinese are not fools. They are willing to pay more for a proven or close to proven resource, which is exactly the prudent thing to expect from multi billion dollar entities.
The shouts of takeovers on an unproven (albeit likely to be MASSIVE) resource was just hype and if looked at objectively, no educated/rational board would stump up over half a billion dollars for something unproven.
I'm still very bullish AVZ, the Short Term SP will take a hit, but drill results (and hype) will see it recover. Hoping the Insto which took the placement have a long term view, and not sell their $15m for a short term gain.
What does worry me is that if the Board went to the Chinese first for the $15m, and were knocked back, and the best deal they could find was with an Insto at a heavily discounted price + options, then what does the rational market think of AVZ. As a retail holder, I would have jumped at the opportunity for shares @ 30c if it came with an option exercisable at $0.305.
AVZ Price at posting:
26.5¢ Sentiment: Hold Disclosure: Held
