If we managed a small percentage of the gain of EXT has enjoyed over the past few years I'll be jazzed. Holloman's holding in RMG will be worth more than their market capitalization in the US & Jonesy will be viewing the world from a penthouse in Monaco. Getting back to reality, copper is THE metal of the moment, Goldmans released a report overnight in London predicting 12mth price targets of between $11,000 > $13,000 a tonne up from under $8k (itself a great price), so if we have these 'vast' mineralizations in SA, lets get going!
This cap raising is to my mind an initial gambit to provide sufficient funds to crank us to the next stage. Having done that I'd be very surprised not to see a flow of great announcements that will fuel interest & share price appreciation. Then the consolidation phase, then the real cap raising stage & hey presto we morphed into a real resource company. Do you think a funds management business in Melbourne could justify having such a huge position (3rd largest) in a penny dreadful going nowhere dud. Would you think that a large publicly listed US company could take a position as the largest holder an Aussie spec company & better still have their president join the board just because he make happen to be a mate of some bloke called JR & by the way jointly own the drill rig? Would you think a fellow called Jones who seems to be recognised as a pretty astute investor would own the second largest position in a roughy on a whim?
Not saying (but maybe wishing) that RMG will replicate the share price growth of EXT, but starting at these levels, .004 0r .007 which ever way you look at it, it wont take much to grow to a significant price. Don't forget .05c is a massive price hike, teen digits would be huge & .20c and above would be Poseidon like for most of us. From memory, Holloman came in at .025c, at .05c they've doubled their money and it would still be priced at the bottom level of what many of us believe is possible.
RMG Price at posting:
0.8¢ Sentiment: ST Buy Disclosure: Held
