With upcoming appraisal activity later in the year they needed to lock in funds & with the news on discovery & Flow Test at LD1 providing the right platform for the SP to move north from its sub1c days, it was just a matter of time for this to happen.
It is not uncommon with junior explores to do this when the SP takes off based on results & they engage with brokers to pass the hat around to Soph's at a discount to the trading price. The next few months will b like a cool-off period, so I think it was the right time to do a raise before the next well is drilled in Dec Qtr. One needs regular news flow to keep the momentum going, so I guess based on 1 well this was due to happen now, ie strengthen the balance sheet & plan for the next phase of drilling. Do keep an eye on EARS over the next few months for future planned activity.
NWE Price at posting:
3.9¢ Sentiment: None Disclosure: Not Held
