To get the full picture of the Rights Issue you have to read the prospectus and the supplementaries and then piece it all together. AVQ states that there is no certainty they will get an ML over San Jorge or get Kolosori back or that they will actually raise enough money to fund the bulk sampling, which is only a part of the work they need to do to get an ML granted over San Jorge. RM's approach is pretty much give me your money, trust me and then hope like hell AVQ gets Kolosori back, as San Jorge does not have the grade to be economic. Irrespective of the various opinions expressed on HC the only opinions which matter at the moment are the shareholders who are considering giving more money to AVQ. Without at least a few mil being raised out of the Rights Issue, AVQ will not have enough money to progress the project. They should conserve their cash until they get Kolosori back, as the grade of San Jorge is not high enough to make that a viable project. Therefore, best sit on whatever cash they do raise, until they know 100% what is happening at Kolosori. If they do not get Kolosori back then at least they might have some dollars left to get another project and reinvent AVQ. At least keep enough cash to have a Plan B. AVQ's survival now rests on the success of the Rights Issue. I guess we will find out on 9 May how it all went. Until then all the noise is academic.
AVQ Price at posting:
15.5¢ Sentiment: Hold Disclosure: Not Held
