123, tallmantimI heard MS's goal of placing at 30 cents and...

123, tallmantim

I heard MS's goal of placing at 30 cents and above and in itself it is worthy but its a promise beyond MS's keeping. Firstly market conditions are just terrible right now for everyone (both in financing and trading terms) and secondly the company is captive to the terms of the 75 mill issue to be approved at the EGM.

As you say Tallmantim, a significant material announcement is the only way to gain control of the price of the next issue. The challenge is likely to be that the market may want more than just an announcement on an agreement on oil leases. Whilst good news this sort of announcement will also raise further questions as it will then solidify financial implications - % share, share of cost, $$ that will need to be raised etc. It would be desirable if they can pull out some cash flow related news eg good drills from the copper project, significant progress on the alluvial diamonds or the US plant developments.

Some might think it doesn't greatly matter but if the issue gets off at a low price then it won't raise enough money meaning further placements will be required sooner. These will then be at a lower price as a result. It's a potentially vicious diluting circle that will diminish the value of small shareholders positions while delivering control to aggressive institutions.

On this I agree with t4p that retail investors are not being well served with the finance arrangements.