I think the downward pressure on the sp will be short lived as shareholders realize that this was a necessary cap raising to keep the project in the hands of the company, and most likely well placed to the overseas and sophisticated investors.
I remember TAM having nearly a billion shares on offer and had to do an entitlements issue to raise $11.8 million, at .005 in October last year. This was to fund ongoing development of the Coyote gold project. This was an issue of 2.358 billion shares. The sp fell to .005 but quickly rose to a cent by mid November and .022 by 28th November, one month after the cap raising. It is now at .033.
I'd be careful not to let go of your shares too cheaply in the upcoming days. This is for a major leap forward for the Tennant Creek project, and is a sign that there is good support for the project, even though they are getting a good deal at 1c.
DSE Price at posting:
0.9¢ Sentiment: LT Buy Disclosure: Held
