Great Western Exploration (GTE) ? Great Western Exploration...

Great Western Exploration (GTE)
? Great Western Exploration (GTE) yesterday announced the strategic placement of new equity to three Chinese
investors. The amount raised was $8 milllion to fund the acceleration of its existing projects and potentially to
purchase offshore projects.
? GTE shares in common with Fortis Mining (FMJ) ? which ran from 20c to $4.00 in the first 3 months of this year ? the
same Chairman (Indrajit Solomon Arulampalam, director Frank Cannavo and most interestingly the same Chinese
investor Madam Cheung. Madam Cheung was issued 6 million shares in FMJ at 40c 20 days before FMJ announced the
purchase of potash assets in Kazakhstan. Madam Cheung was the main investor in GTE in yesterday?s announcement.
? Shareholder approval is required in July for the additional issue of shares to the other two Chinese investors. Following
this we suspect that GTE will announce an offshore acquisition in line with their announcement yesterday which could
easily be the trigger for a re-rating of the company. Identical to the circumstances that led to FMJ?s major rally.
? The GTE share price has been consolidating since last year with firm clear resistance across 55c. This consolidation is
now likely to be a platform from which the share price can springboard itself to new highs. Such consolidations often
lead to significant breakouts, with string uptrends to follow. Interestingly weekly charts are still displaying positive
trending signals and daily charts will be doing the same closer to the 55c breakout.
? A break through 55c will be fresh record highs and considering the potential for a company-making announcement to
come, targets well north of $1.00 could be seen. We see limited downside risks in the share price with the 42/40c zone
providing healthy support.