Originally posted by Mutley8
Interesting move with the CR and it’s surprise timing. Looks like get the bad news out (raising cash for other gold projects) with the good news (seal the deal for AK) plus maybe resource upgrade??
So who wants to sacrifice their shares and roll out the bitter sell, dump into 1.9 or even 1.8 and risk not getting in again at that same price?
While I’m not happy about it, it was also obvious a CR was coming somewhere along the line, obviously I would have preferred later when the SP was higher to minimise dilution. Although not much SP impact expected from dilution for such a small MC considering its bringing cash equivalent value into the company. What down a pip or so for a few days then we get going with sophs or cornerstone investor on board?
With a calmer look, and the positive gold market and awesome projects, I get the feeling they are willing to cop some short term backlash now. To me the company appears in a serious hurry to push the other projects along right here right now, not wait 6-8 weeks post EGM and raise end of March.
So who’s guessing what the cash is for?
1) Finalise Sokimo deal to “finalise the outstanding commercial terms for the potential acquisition of the Kibali South and Nizi Gold Projects”
2) New projects?
3) Possibly future funds for “continued to advance its exploration activities at its 70% owned Maniema Gold Project” if current drilling results are ok?
Certainly has created interest whichever way you look at it!
Hi Mutley, this is my take on the great news, based on last quarters figures we only have $62,000 left and have a requirement of $1,640,000 to operate successfully, so a CR was always going to happen sooner rather than later and it is the first one in 12 months, this is great news for VEC, it means that we are cashed up and ready to go, office costs paid, other gold plays are funded with the flexibility to move forward immediately, as other posters have pointed out a CR was inevitable and could have happened anytime in the next 3 months, this way it is out of the way done and dusted and a further CR should not be needed anytime soon, much better than having the possibility of a CR hanging over our heads which could slow down the SP
