Some discussion with other investors yesterday lead me to the following information. If a small company is sitting on a great chance of success with its product then serious investors will look at the balance sheet before tipping in any cash. If they see an insufficient amount of funds they will wait as more than likely they will be able to get in on the placement at a cheaper price, and in a bigger way. Once the placement is a success and a done deal then the share price will rise because essentially the company has been derisked and the outcome is more likely to be successful and the sp will eventually reflect that. If shares are hard to get then also there will be on market buying during or after the cap raise. Given the prospects here, the new cornerstone investor, the price of gold and the proximity to drilling results the sp can really only go one way from here.
RML Price at posting:
8.8¢ Sentiment: Buy Disclosure: Held
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