And I know it’s a bit mean but a shout out and a nod to the ‘head scratching’ nit pickers who cried their ‘mining expert’ surprise at the popularity of the last equity raise.
Some mining experts were scratching their heads late last week over the huge popularity of the $80m equity raising by the $632m gold miner Spartan Resources.
Spartan raised shares through a $47m placement and $33m entitlement offer at 58c a share, an 11.5 per cent discount to its last closing price of 65.5c on April 17.
The funding is to explore at the high grade Never Never deposit and high-grade Pepper Prospect in Western Australia.
The market seems to have forgotten the company had once collapsed with its deal heavily subscribed to.
A gold price rally and a lack of raisings in the market to gain exposure to the commodity since the raise by Evolution Mining last year is seen as one contributing factor.
While management is considered to be running the business well, an observer did point out that Spartan has never been a tier one asset, so it was a strong result.
But the understanding is that a new discovery was also the draw card, while NRW sold its shares as part of the raising, taking away concerns the stock would fall when it made an exit.
A limited number of funds were allocated a large parcel of stock, taken as a signal that the company wants to keep a tight investor register.
SPR Price at posting:
78.0¢ Sentiment: None Disclosure: Held
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