There will also be selling by those holders wanting to get their capital back, bank a small profit but keep the options. This will take a few days to wash out before we get to an equilibrium. Then I think we will see upward price pressure for the reasons outlined by Wazz in his previous post.
The additional capital raised will certainly allow STM to progress their two key strategies concurrently (rather than just one). We know that they are well advanced on developing the MRE for El Palmar in advance of progressing conversations with those parties already in their data room. That was always the primary focus for this capital raise with the aim of a MRE in the coming weeks and a possible deal before Christmas.
They now can also move forward with additional drilling at Limon and accelerate the MRE for that deposit.
And should they jag a good outcome with their strategy for El Palmar, that will only open the door further to what they can do capital wise and so ensure that they can deliver on a timely MRE for Limon.
The near-term story is clear and a with a potential valuation event on El Palmar, we will see a stark realisation of inherent value which should be the primary catalyst for further share price advancement.
STM Price at posting:
0.7¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)