The market cap according to HC is $45 million. The amount they are raising (just over $4million) is under 10%, and well under the usual 15% companies raise without needing shareholder approval. Therefore my conclusion is that they are raising the bare minimum to get them through to a JORC resource (Q4 2012), whereby they would hope that the share price is re-rated and therefore they can raise more at a higher price (less dilution).
My view is that this raising is a small gift to shareholders. I think it will be relatively easy to sell higher than 10c in the next few months.
I plan to get $2500 worth and sell some down in September. I probably won't keep them all (plus my current holding) as the geopolitical risk still makes me wary, plus I haven't seen much detail from the company about their road to production.
GMR Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
