See below an article on capital raisings in general. So I dont...

See below an article on capital raisings in general. So I dont think the MKG share price will rise in the next CR @mercurialito, unfortunately the opposite.
But don't give up hope , because MKG has quite a lot of underlying value, and sooner or later another mining company will snap them up. Preferably at many multiples of the current price !!!


"In theory, capital raisings to fund future growth and expansion should be a good thing. A capital raising to reduce debt in an otherwise fundamentally sound company should also be a good thing. But in practice, capital raisings of almost any kind and for any debt-related reason more often than not drive down the share price.

A dramatic example can be found in the recent announcement of Seven West Media (SWM). The company announced that it was offering new shares at $1.32, representing an 18.5% discount to the prior closing price of $1.62. The rights issuance will raise about $440 million primarily for the purpose of cutting debt. To demonstrate what investors thought about the capital raising, here is a price chart of Seven West over the five ensuring days:

Obviously, many investors took the capital raising announcement as a SELL signal, but were they justified? Managing director of fund manager Ausbil Dexia, which owns 5.2% of Seven West Media, sees the raise as a positive sign. Fund manager Paul Xiradis feels the shares have been beaten down over concerns about the company’s capital position and eliminating that risk through the capital raising should propel the stock to better performance.

Time will tell who is right.

Capital raisings do, however, dilute of the value of shares for existing shareholders. And while company management may celebrate the view that capital raisings will increase shareholder value over time, in the minds of many retail investors capital raisings mean nothing but short term trouble "