re: will need another placement..???? All valid points...
But the charts are suggesting otherwise I'm affraid...well almost.
WTE gave me a "preliminary" buy signal last week, as such, I will be looking to next week for confirmation of a possible trend reversal...if this does prove to be the case, the next charting cycle could see the price rise significantly.
LOL...all this talk about options money...in the bigger scheme of things, the impact is negligible.
Lets see...
Assuming the options do expire in-the-money, WTE get about $12.8m cash and shareholders get diluted by some 27%. (ie, 257m shares)
If on the other hand, the options don't expire in-the-money...then WTE may simply elect to issue only 150m shares at say 4c, resulting in $6m for the kitty and dilution of only 15.7%.
Importantly, with bank finance the preferred option for development of Nullagine, they will not need all of the options money anyhow...even if they do all get converted. In the end, it may turn out that shareholders will be much better off if the options actually expire worthless.
I guess it all depends on the feedback the company is getting from the banks regarding the financial structure for development of Nullagine.
I have done a little reading over the weekend...seems WTE is sitting on a viable project, enhanced even further by the recent move in gold.
Importantly, in spite of the additional drilling required to enable mining of their many scattered resources, it appears they have already done enough to commence a staged production strategy, with the obvious aim of funding future expansion from an early stage-1 development.
Seems to be a lot of negative sentiment towards this one...and frankly, I'm not sure what it would take to get things moving upwards once again.
But as I said, the charts are indicating an underlying trend reversal...and quite often, the charts will show up behind the scenes activity, long before it gets announced.
Cheers!
WTE
wedgetail mining limited
