I've being going backwards and forwards in my head about the SPP and why the Company, seemingly out of left field, has decided to do it right now, at this juncture and at this price. I've played so many scenarios over in my head.... the Company is just trying to bolster the cash balance for executive salary increases... Bonanza is going to be a disappointment, delay the announcement and hope that shareholders shell out for the SPP whilst the SP is still at +2c... the Company wants to fast-track and maximise revenue from the bulk sampling program... there were other thoughts that are too pointless to post.
I was talking to my wife about NTL again tonight, and I'm used to her eyes just glazing over when I talk about stocks... she has degress in finance, economics & accounting, so she's no fool when it comes to the money and the markets. Despite her eye-glazing and distant stares, I go into considerable depth about the stocks I/we hold and/or follow and she said to me tonight;
"It seems to me that this isn't about Talisman Deeps, it's about Rahu. The Company wants to gain more than a 20% interest in Rahu. That's why they're doing this." . To say I was surprised by her response and that she had actually paid this much attention to my ramblings would be an understatement, but that's a conversation for another time.
It's right there in the '
Offer Document' in black and white;
"...Undertaking with limited resources the at times frustratingly slow and painstaking work required to provide the greater understanding of the resource required to advance the realization of its plans for the New Talisman Mine and indirectly advance its Rahu asset in conjunction with its joint venture partner."
"To explore and implement initiatives to expedite activity, and potentially a greater interest in Rahu and other targeted areas such as Taukani Hill (where previous bonanza samples at surface were taken) and Dominion knoll which is highly prospective."
If this was just about Talisman Deeps it wouldn't make much sense to offer a SPP now when we have sufficient cash on hand to see us through the planned 24 month bulk sampling programme/period. So why else would we want the cash now? The answer is, Rahu. (I actually started a thread a little while ago,
Rahu Project, where I touched on the subject of getting Rahu back).
Sometimes it helps to see things through different eyes. All I saw was a SPP (at approximately a 25% discount to the current SP) come out of left-field, which resulted in the SP being battered down to the SPP offer price within a matter of minutes (maybe half an hour, at most), and me staring at a pretty significant reduction in my paper profit.
Full disclosure: I sold 1.3m shares of my holding today and bought 1.3m NTLO thinking I was de-risking my exposure to a potentially bad Bonanza announcement or perhaps a massive sell-off on the the Bonanza resource announcement being released. To be honest, if I had spoken with my wife before I had done this, I would've held my entire position, and I probably would've still bought those NTLO anyway.
In my mind now, this SPP is all about trying to increase our JV interest in Rahu. Barring a disastrous Bonanza announcement I intend to apply for my full allocation under the SPP. Of course, as always DYOR and make up your own minds, I know I have mine. GLTAH
