Offer closed short. I think we've expected that, I did, but it's certainly short of hopes. Between placement and entitlement offer they were looking to raise about $1.2 million and they've picked up $614k before costs.
With remaining cash at bank, that seems enough to fund through the balance of this year into early next year. If they can't place the remainder of the shortfall shares in the next 3 months they will have to use the initial stages of any improved conditions to make a further placement rather than seeing it go immediately to improving the valuation of the company. That's a frustrating prospect.
Also it could be that any prospective suitors (be it copper, nickel or sands) now have the option of dragging things out a bit to put the company under additional financial pressure. I think it would be best for the company to get enough funds in, if they can, to get through 12-18 months and have a stronger position with the negotiations they will be aiming to initiate.
Such is the challenging roller coaster life of a junior mining prospector.
GUN Price at posting:
1.5¢ Sentiment: Hold Disclosure: Held
