APART from the $A25m that needs to be raised (Iam assuming this is already done by jr's inferences) there would need to be on market buying of at least 300m shares IMHO to have any chance of getting to 10c - possibly even 500m shares. If you assume an average price on the way up of 5c (most of the volume will be from early punters stepping out - as it breaks 5/6c area the move will be quicker as the shares fall into end holders hands) that means another A$15-25m.
Where is all this coming from?? Well if the get 5 or 10 RAB's and Firebirds putting 10m sterling up (around 0.3%) of some of their funds under management) then that is 50-100m sterling or A$125m-A250m so I guess it is not hard to think there could be that much interest.
The options will probably drag on the heads a little but you can see there is plenty of possible cash - let alone any individuals or midde eastern money that could come in - a lazy US$5m is pretty easy for about 100+ punters in the middle east.
This has been derisked so much - peacekeepers moving in, PSA agreements signed, JV signed, $US5m in the bank (to be shared with the Puntland govt I think) , road show done etc
Personally I have a hard time seeing it valued at $1b or 15c+ but I can see half that easily with the first jv in ink.
Findlays don't have an infinate amount of stock or options to sell so in the end when real holders have bought them and ST traders out there will be little to stop it - a la WNL.
As for Canmex - there are very few capital rasings I have seen that are done at the highs of a SP move and ABOVE the recently traded ranges - especially in a negative equity market - if people can't see the hand of Lundin behind that . . . .
RRS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
