Shady I think we are sat on a serious gold deposit and the...

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22/10/21

14:20

Post #: 57002068
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Originally posted by Shady Merv: ↑

On thinking about this move a bit more, I believe that it is a strong hint that HQ believes that it is on to something potentially valuable at Feathercap.

Why do I think that?

1. The potential doubling of the number of shares on issue (by the end of November 2023) so as to reach >952m could be seen as a turn-off to some investors. SM, for example, does not like investing in companies with a large number of shares on issue as that fact will probably suppress the share price - the greater the number of shares on issue = a high number to be sold. The Board must therefore think that it will be beneficial though, for the company that is.

2. If all options get exercised, then about $38m will be paid to the company. Question: Why so much?

3. Indeed, why so much? What would a micro explorer do with that sort of money? Why would it need it? Answer: because it might need that sort of money to develop Feathercap, not now, but in a year or so. To raise that sort of money must have a reason.

4. The nice thing about it all is that the holding shareholders after today will be able to participate, together with the non-shareholders who buy options when they list. If all goes to plan, then the money will be raised by shareholders and not by soph investors and/or a a financial institution.

What do others think?

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Shady I think we are sat on a serious gold deposit and the option play is fantastic for us
Assay results will give us a clearer picture but I expect some positive numbers having read our recent announcement
Plenty more buyers than sellers which is very different to recent weeks
i think it could be a very Merry Christmas for us long term holders

AUR Price at posting: 5.4¢ Sentiment: Buy Disclosure: Held
1 Upvote

0 Great analysis

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