Well that cleared things up, communication is key to everything really
RE: Retail capital raising
John Prineas
Thu 24/03/2016 5:49 PM
Inbox
I understand your concern about dilution. I have personally invested nearly $2m in St George and I am anxious to protect the interests of existing shareholders and to grow the value of their investment.
The SPP announced today is not another capital raising. We knocked back some of the institutional money at 8.5c and re-allocated the shares to the SPP to create a fairer overall outcome for existing shareholders. The SPP is capped at $255,000 – 3 million shares.
We only raise enough funds to complete the exploration programs ahead of us, and to allow a small buffer so that we don’t have to accept brokers dictating terms to us.
Two brokers that participated in the current capital raising complained to me strongly that St George should raise more funds. They wanted us to raise $5m so we could be better “set up” for the future.
That’s not our style. For us, exploration is about managing risk and maximising shareholder returns.
We now have strong financial backing to deliver the drilling success we all want. The weakness in our share price today was very annoying, but we aim to make that a distant memory by the end of April.
Thanks for your support.
Regards
John
(20min delay)