Reminds me of PIR - Colonial Resources which became Papillon back in 2010.
Colonial was a shell with a bit of cash that managed to acquire a Mali gold project back in Dec-09/Jan-10 and did a 7:1 rights issue to raise cash and re-cap the company. Investor presentation in Jan-10 (similar to what CNO have just done) outlined the details of the project and even the 3.7gt au grade which later drilling confirmed)
But despite the potential of the deal, Colonial/Papillon went sideways at 10/14c through to August 2010 as people got set and others bailed. Drilling started midyear, the 7:1 placement stock finally got digested by the market and the stock ran to 40c in space of a few months on NO NEW NEWS - after being 10c for ages.
Once the run started it hardly paused but even though the market knew Papillon needed cash, the company held off on doing a raising until the stock hit 70c in Dec-10 at which time they placed $12.4m at 55c. Drilling continued to deliever good news - including the Fekola d "discovery" (one suspects management knew all along, as did the savy PATIENT investors who had ample opportunity to get on board at around 10c.
After the Dec-10 raising they got on with business, although a shake out occurred after the March 2011 market downturn but did PIR not come back to the market again until Feb 2012 when more funds were raised at 76c. It hasn't look back since then.
Well...CNO has the potential to be a similar story, if you can be patient. Just because the project has been announced to the market doesn't mean Mr market always responds immediately. Hey...we might even see it continue to plateau around this level for awhile yet - if PIR behaviour is any guide.
Nevertheless, the project looks REALLY interesting, and so maybe following some drilling news in Dec-12 we will get a stock price "kicker"...but as to when that might happen....who knows. I have taken a position and I am more than comfortable giving this some time to deliver some value.
If PIR IS an accurate guide to CNO's potential, then we might all make quite a bit of money between here and Jun-13.
Good luck to all holders.
Coop
CNO Price at posting:
21.5¢ Sentiment: LT Buy Disclosure: Held
