Well hotcopinvestor; There will be information coupled with the share issue, this has been stated to me by Atlas. Raising 120mil plus the 65 mil in the bank at the moment is too much money to have on hand with low CAPEX operations. It may be to provide great flexibility. On 15/04/2008 there was the dual tranche placement to raise 100 mil with 50 million shares issued. This was suspended till the 22/04/2008. In that time there were 5 announcements with 4 being price sensitive. One of those annoucement was a 30 odd page prospectus and the other interesting one was the aquisitition of right over Mt Drove. The latter is more indicative of what could happen this time. I have to ask myself what a company with low CAPEX as stated needs with the extra 120 mil. There are a few scenarios: 1) 120 mil will be used to begin development of Ridley to insulate Chinese from risk. 2) Another acquisition of land. There arent any companies on hold that I would have thought would be part of Atlas' strategy. 3) Simply to ensure ramp up is successful, this could cost more money than anticipated with rise in oil and aussie dollar and decreased income with drop in i/o.
This is however all speculation, I am a holder and not concerned. Scenario 3 should have been priced in and despite this we have seen many other juniors rising.
AGO Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
