it depends on 2 things. first do you believe what they're...

it depends on 2 things.

first do you believe what they're telling you? and do you think they'll get the funding?

obviously i dont believe them and history is on my side. i've followed rau for years now and they have never followed thru on anything to date and continually give timelines that are either optimistic or opportunistic when funds are needed to be raised. just look at one of last years presentations. construction was due to start on both their gold projects q2 10 and fnq due for gold pour q1 11. bolivia production due q2 11. then theres the outstanding copper prospect that got sold to a mate under suspect circumstances. this has been going on for years. some people say there are reasons for the delays and shelving of projects. they have also been saying that for years.

risk reward for bankers for this kind of money, they would like to see 2moz at 2gpt. rau has a mc of 20mil + 140mil construction. fml has a mc similar and has better grades, larger resource with everything in place and turning a profit. with far superior future prospects and proven management.(its not my favorite goldie but i do hold and no cross promoting intended). i hold others with similar 20mil mc with better ground and will also struggle to get 30% of 140mil because they are also marginal.
the other miners in bolivia are heavyweights compared to rau and they were before getting there. if there are setbacks along the way(more probable in the mountain regions of a socialist country)these larger companies could absorb it easily. what happens if rau need another 20-50mil?

if you're looking for an investment then rau should be at the bottom of the pile. there are far better options with most goldies going up 100-400% in recent years and some are paying divs.
if you're looking to take a punt or trade them then thats different. i've done it myself from time to time because they do follow a pattern before and after cr's. but remember its gone from 20c-5c-0.9c. dont get caught holding the parcel when the music stops.