Guys
Its time like these where we need to step back from the detail and look at the Big Picture.
To me, the key big picture questions are:
1. Does the company actually have over 1.3m oz in gold resources? and
2. Can it be mined profitability?
The reason these are the big picture questions is because if the company ultimately does run out of cash, but has already invested a considerable amount into truing up its resource and putting a production operation into place (as it has), then the Directors will find somebody to either invest in or buy it.
If the answers to questions 1. and 2. are 'YES", then I don't think the Directors would sell the company at the current price as they would be giving it away.
In my opinion what you will see happen is as follows:
- They will get some subscription to the SPP- but not enough
- To make up the shortfall, a placement will be done to some white knight investors at a significantly lower price than the SPP price. Those white knight investors will consist of the the Directors themselves (predominantly JW) and their friends.
So, my advice to all of you is NOT to take up the SPP. It is far too risky. Rather sit back on the sidelines- as I am doing- and wait to see what happens.
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