Yaqona, agree that the ESG top up is one very good reason to hold HGO in the near term. Not sure if and when Kanmantoo will be marketable to a predator but I would assume that HGO would want to drill some more holes in the vicinity before it entertains any offers. I would be very surprised if HGO sold Kanmantoo in the next couple of years. Cash flow is crucial to any business and to allow future exploration whilst producing/earning will be the key to HGO's success.
I agree that HGO don't necessarily need the additional $10m from retail investors but I would imagine that they would have expected to get it all the same. Ten million is currently the total exploration budget for Indonesia. Even though the SPP is not underwritten, the company was banking on $35m total. Sure they could have got $35m from sophisticated investors alone but they took a calculated gamble to keep everyone happy and although some minimal risk, it looks as if it will pay off.
HGO Price at posting:
42.0¢ Sentiment: Hold Disclosure: Held
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