I think that if the SPP is not taken up then they will not offer a better deal to shareholders. All they were doing was giving shareholders the chance to get some shares at the same price as the big boyz got.
I expect the directors will take up their allocation at 85 cents to demonstrate they believe in the company - they cashed out a heap of options at much higher prices so this is their way of showing support.
In total SLR will have picked up close to $50m in cash (minus costs) from the placements. SLR may not need the extra $15m from the SPP, and shareholders can buy cheaper on market if they want more shares.
If things get really nasty in the gold market over the next 18 months the capital raising may be what saves the company as it hopefully will remain debt free. They could mothball Murchison operations and just mine the high grade ore at Mt Monger to keep things ticking over until better times arrive.
loki
SLR Price at posting:
77.5¢ Sentiment: None Disclosure: Not Held
