Placement Shares are the ones that were recently sold to sophisticated investors at 0.006 to raise $1.7M to fund the up and coming drilling campaign at the end of November. They hit the market today. It is not unusual for sophisticated investors to make a 10-20% gain by getting the cheap shares and then selling them off quickly. So the share price will often head towards the capital raise price after a capital raise. In Lincoln Minerals case most of the shares went to their major shareholders and management, who to date have not disposed of any shares, even when it was trading as high as 10c. So while I would expect to see some downward pressure over the coming days, it may well be the last opportunity to get in at a low price before drilling begins at the end of November and a string of positive announcements that should follow over the coming months.
LML Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
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