It amazes me that people invest in junior companies, not just MOZ but all of them, be it tech, mining, oil & gas, whatever with the absolute vast majority of them having little to NO cash flow but all the market wants is results,results and more results with announcement after announcement.
This all costs money and if a business doesn't earn any money then it has to raise it from somewhere. In what we are all invested in here if that money is spent well by the company then it achieves milestones that unlocks value for all shareholders.
I for one was surprised by the TH yesterday but the company has made a huge discovery that to unlock further value for all shareholders is going to take more dollars, plain and simple.
To unlock value a business has to be funded and as I said if its spent the right way it leads to share price appreciation.
Let's look at the facts with what has happened in MOZ :
16th June announces a placement of 30,833,333 shares with a 1:2 MOZO to raise $370k plus a 1:4 rights issue totalling 77,161,355 shares again with a 1:2 MOZO to raise $925,000.
This issue only CLOSED on the 30th July.
On the 10th August they placed another $606,000 on the same terms to clients of Taylor Collison and Alignment Capital : 50,500,000 with a 1:2 MOZO.
Now on the 19th August, 7 trading days later to the last capital raise the stock closed at 2 cents with the MOZO closing at 1.1. Share and option package worth 0.0255 or a return for all shareholders at the rights issue price of 112.5%.
One month later from the close of the raising on the 10th September, MOZ closed at 0.029, MOZO at 0.016. Package worth 0.037, a return for shareholders at the rights issue of 208.3%.
One month on again on the 10th October MOZ closed at .042 and MOZO 0.021, package worth 0.0525, a return of 337.5%.
This return has come in a period of only 2 and a bit months from the last capital raised and why?
Because MOZ has gone hell bent for leather working on the ground. They've finalised the original acquisition and bought another 4 tenements one of which is Namangale which has just announced hits from surface of 100m and we anxiously await the met results for all of the work completed from Chiwata and also here at Namangale as they drill further diamond cores.
And if the met work is good then it's going up IMO.
They can't do any work with out any money and the directors to date have done a pretty good job in allocating it in the right areas.
Over those 3 raisings at 1.2 cents there were 158,494,685 shares issued. Before that there was less than 300 million. However even if you didn't participate in the rights issue your share price alone has nearly quadrupled even though you were diluted by some 35%. And any shareholder who has bought in at the raising price then or above it subsequently has done well also.
The business has to be funded and I think that now that it will be the stock can continue its path upwards as we await further results that will continue to come through now because of that said funding.
GLTA.
sK.
MOZ Price at posting:
4.0¢ Sentiment: Buy Disclosure: Held
