I think you can safely say that the cap raising is not for upgrading the plant...they clearly stated that they will be producing 30,000 oz p/a for the next 4 years. Correct me if I am wrong but it does not take 4 years to upgrade a plant and why would they raise capital for that now considering their SP will most definitely be alot higher after a year or two of solid production (meaning less dilution).
It has to be for completing the plant, further drilling and working capital as they only have a million left. Then you got to ask why is it in a halt if the offer is to sophisticated investors? That could have been worked out overnight. The raising must be to shareholders.
Just my thoughts
AAM Price at posting:
33.5¢ Sentiment: LT Buy Disclosure: Not Held
