re: Ann: Bass Commences $1.7M Gold Processing...
If all goes pretty much as planned over the next couple of years and metal prices remain strong, then about $2.50 a share is well on the cards. The key, I think, is to increase the resource base. That's what the market will want to see once production starts. I remember Mincor starting out with a smallish resource a few years ago, but once it was increased, and metal prices rose around '06-'07, their share price soared well past $4.
I was surprised and disappointed that the new placement was as low as 25c. Surely 27c was obtainable, and certainly should have been (or better) in a few weeks time. I don't really see why the huge rush to start the gold feasibility study. And anyway, given a few weeks they could have raised that small amount of money through a rights issue of about 1 for 10 at 27c, which I'm sure would have been quite well received by current shareholders, rather that the current arrangement. Still, these occasions always present shareholders with a chance to get some free shares by selling at the open and buying back in lower a short while later, which I managed myself this morning.
BSM Price at posting:
26.7¢ Sentiment: Hold Disclosure: Held
