Ann: Trading Halt, page-42

The link to "Fresh Equities" (which was posted today), gives the details of the Credit Raising being offered to Investors. I was a bit surprised, but have calmed down a bit. My reasons are as follows. I've held shares in a few small-cap metal stocks that have ahd capital raisings this year, and everyone of them has been different. In the most recent case the VWAP was based on the share price 5 days after the offer was closed. It meant that shareholders were in the dark. They had to transfer their money for new shares without knowing the price of these shares or how many shares they would get, until about a month after the CR was first announced. It was a diabolocal act by that board and their second cap raising in 12 months, so I sold all my holdings.

In comparison, the board at CCZ seem to have already calculated everything. According to "Fresh Equities", sofisticated investors are being offered shares at 2.0c (which CCZ say is a 4.75% discount on the last traded price of 2.1c). As for the options, the investors will receive options of 1 share for 2 shares at 5.0c. They state:
"Options are included at 1 options per 2 shares at a $0.0500 strike price, expiring 36 months from the date of issue."

It means that investors have 36 months to pay for the options, & if they take them up, pay 5.0c per option. So these options are at a premium to recent prices. Also, "Fresh Equities" says that the capital raising aims to bring in $0.75 million to $1 million. So the dilution of CCZ's market cap, which is currently $12 million, is about 8%. The funds will last for 6 months or so, which should give CCZ the time they need to get the copper stockpile moving. Finally, investors have 3 days to apply, which means that the capital raising will be quick.

Based on these points, and if we can believe the details given by "Fresh Equites", I'm going to reserve my judgement. I'm not happy with the rapid plunge in shareprice, but if they report some good drilling results within a week or two, the share price may bounce back to +3.5c by Christmas. Let's hope, and good luck and hold tight. It remains a vey good prospect, amigos.