It is reasonable to understand why the recent share placement and capital raising attracted investors from international locations.
1. At 82c, the SPP was discounted.
2. Only 60 million shares exist and they are tightly held (sometimes liquidity issues cause sharp rises and falls in the share price).
3. Brazil imports 90 percent of it's potash requirements.
4. Brazil only has 1 operating potash mine, by Vale.
5. AGR's new Atlantico mine is opposite Vale's mine.
6. Some of AGR's mine managers are the former Vale mine managers, who had great success in establishing Vale (across the road!), (now, how did AGR manage to steal these guys from Vale?).
7. AGR also has extensive phosphate reserves in Brazil.
8. The top 3 shareholders are Bond St Custodians, Arredo, and Forbes Manhattan.
9. AGR is to list on the TSX.
10. This is a case of right resource (large Potash demand), right place (Brazil - a big country), right time (significant population growth), good management and financing.
Aguia Resources
Aguia Capital Raising
Aguia Yahoo Finance
Nothing is ever guaranteed in the world of small cap ASX mining, and there are always issues (eg. Aguia's deposits are at depth, but so were Vale's, across the road, and they are successful and profitable). This should be as close to a no-brainer as one can get (given time, and the appropriate expertise), IMHO.
Gw
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