The Funds are all currently sinking billions of dollars into base and precious metals. They believe there is plenty of up side left in this bull market. There is an extraudinary amount of new investment dollars looking for a home at the moment. With the current market sentiment, even smaller speculative plays are attracting attention, especially if they have a proven resource like AIM.
With zinc offering potentially the best upside based on fundamentals, any good zinc play will be drawing considerable attention. Refiners are not able to get sufficient zinc concentrate and consequently are having to negotiate cheaper prices.
AIM has a proven high grade deposit of zinc. The surrounding area is very prospective for further zinc mineralisation. Barclays Capital and Seymour Pierce are recognised as being amoung the best in the business, as is Snowdens. They wouldn't risk their reputation on a spec. company unless they believed in both the project and the management's ability to pull it off.
The better the finance agreement the more they benifit, so they will be working hard to minimise any dilution. Don't under estimate this one!
AIM Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
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