I'm surprised you think this a 'garbage' stock. It has held up very well for a more speculative company over the past 2 months.
It is a fairly reasonable raising which is good to see existing shareholders are able to participate. I understand the major share holders - Lion Selection, Jonah Capital, and Contango Asset Management - have committed to fully take up their rights.
The group is sitting on a world class, higher grade vermiculite deposit. It was purchased from RIO and now will overtake RIO's 'world class' vermiculite deposit (Palabora). In fact, the vermicaulite quality at Namekara surpasses that of Palabora and command a significantly higher price.
I suggest you have a closer look of the track record of Lion Selection. The people behind the company are second to none in this smaller resource space. Having Sir Sam Jonah as chairman and also a major shareholder should not be underestimated given his standing in Africa.
And finally, my understanding is that the major shareholders are also very interested in not just the vermiculite, but also the very real potential for copper and gold in Namekara. Namekara geology seems similar to Palabora which also contains copper, gold etc.
I believe raising this significant amount is to not only further advance Namekara (I was told that a final $1m payment was to be made), but to proceed exploring for copper in the region. If successful, we could very well see the price fly.
Anyway, personally, I am very comfortable with the group. There is some housekeeping required, however, my sources are very excited about this company. The 3 major institutional shareholders have only bought in within the past 6-9 months.
Anyway, that's my 2cent worth. All the best to holders.
GLF Price at posting:
5.7¢ Sentiment: Buy Disclosure: Held
