Well here is a lesson learn't.......ie when the discount is significant and drill results are imminent jump in quick!.....didn't even know that it could close early under the SPP rules............Like CallandPut I thought I had plenty of time and was focussed on several more urgent SPP's going on in my portfolio, so missed out completely.....I'm sure we are not the only ones but the unsatisfied demand, which must be huge, will be forced into buying prior to further possibly game changing announcements very soon. Although we now have to top up at this higher level, in the big scheme of things 2.3c is still very very cheap with medium to long term price targets in the 10x to 20x range(hopefully even higher).
As I have previously mentioned there is a way to gain indirect exposure to GML and that is by also adding exposure to the markets other best kept secret in HRN which is right in the centre of the 3 major mineralised zones in the Gum Creek/Gidgee area. They have adjoining tenements to GML which cross and share these mineral zones in places and HRN will be commencing drilling in September. HRN already as a gold resource of 1.39m oz and the SP has been pulling back since their 1:7 renounceable rights issue was announced at a discount of nearly 50% to the SP at announcement(ie 30c vs 59c)....As you would expect the SP has settled mid range between these two levels at 46c giving a MC of a mere 34m(ie for a resource of 1.39m oz plus significant existing infrastructure and many targets where historical drilling virtually assures an increase to its current reserves...eg Butcherbird Shear estimated to hold 300-800k oz Au).
Post HRN's RRI they will only have 80m shares on issue and it is very tightly held with the major holder Zeta Resources at 70%....both GML and HRN SP's should benefit on any major discovery news coming from either drill bit over the next few months....corporate takeover and merger activity in the area is a high probability in the future as per Peter's recent comments highlighting the acceleration in corporate activity in the area in recent times.......I just think its extremely compelling to own these two stocks as a package and it will be a very exciting ride as their respective drill results are released in the near future........IMO DYOR GLTAH
GML Price at posting:
2.2¢ Sentiment: Buy Disclosure: Held
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