Assuming CItic took up there full entitlement to the rights offer they would still hold 20% of the company. That would mean they are intelligible to increase holdings further.
In relation to the larger mining house taking a slice of the pie I couldn't agree more with you. I would think PAC partners and IVR management would be talking to bigger miners with a bit of cash for perhaps a 20% claim now. We will have to wait and see what interest comes our way. Alternatively there are a lot of cashed up wealthy Chinese looking to buy into companies like IVR and we cannot forget Sprott who have rung IVR in the past.
Management I believe has done the right and fair thing both offering the entitlement to existing holders first.
I was wondering what holders would do if they were management. If they are extremely confident of getting a mine up and running at Paris cheaply I would be drilling Paris first and foremost.
If they can more than double the resource which from all announcements and presentations they seem to believe they can and then turn it into a mine they could get all important cash flow happening in this difficult market. This would serve three purposes:
1) stop further dilution 2) allow them to drill other targets 3) provide funding to other cash strapped juniors with exciting targets.
Imagine the cash flow position we would be in if they started mining the high grade area at Paris. Though management has made a number of mistakes there is sufficient knowledge there to be able to distinguish the wheat from the chaff in terms if funding other juniors with exciting prospects.
These are just some thoughts are there any other views out there?
IVR Price at posting:
3.8¢ Sentiment: Hold Disclosure: Held
