XAM 1.67% 5.9¢ xanadu mines ltd

In that case they probably raised close to (maybe slightly short...

  1. 1,220 Posts.
    lightbulb Created with Sketch. 278
    In that case they probably raised close to (maybe slightly short of) the amount they expected, With an upper limit of $10m they would have been expecting from 4 to 6m IMO.

    Given the lack of info from the company we're still left wondering "why raise now?" so here's my thoughts on why a 'generic' mining company might do a CR a month before an MRE comes out:

    1) An opportunity arose for an acquisition that needed immediate funding, but won't be announced until a deal is done, hence minimal info
    2) Sweetheart deal to get 'desirable' holders on the share register by offering a discount price prior to an anticipated share price rise (I'm not suggesting XAM would do this, as it's potentially unethical or even illegal if it's based on insider info, but it would be naive to pretend it never happens in the wider market)
    3) The board think the updated MRE will fall short of market expectations, and combined with expectations for the share price to follow the lassonde curve they want to lock in the raise price now as they don't see it being significantly higher than the current level in the next 12 months
    4) They want to crack-on with ramping up exploration and don't want to wait until next year to secure the funding (if the MRE comes out mid to late Dec you don't want to be hitting up instos over Xmas due to holidays, better to wait until Jan which means a couple on months delay on securing funding)

    The above is, of course, pure speculation, But we are in an information vacuum at the moment, until XAM decide to update us.

    Last edited by FlightTime: Typo 23/11/23
 
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