A buzz Around the Traps has fingered BAILEY MINERALS NL (BAA) as a likely runner and as usual, it has been pointed in the right direction.
The company yesterday replied to a please explain from the ASX, although it was dated April 7 when the shares were 81.5c.
Yesterday they touched a high of $1.25.
In March, Bailey received an initial price query from the ASX after the shares climbed from 58c on February 28, to a high of 76c.
The company suggested the price jump was due to the acquisition of the Condoto platinum project in the Choco region of Colombia.
Last month the company told the ASX it had settled the acquisition of the Condoto project and appointed some directors.
Part of the consideration was the placement of 3,333,334 shares at 30c per share to raise $1 million, which was completed on March 15.
The first tranche settlement was completed on March 21, including the issue of six million shares in the company and payment of $US500,000 to Smart Kingdom as consideration of 51% of the Condoto project.
In addition to the settlement, Bailey advised that Ed Nealon had been appointed as non-executive chairman and William Hayden was appointed as a non-executive director.
Mr Nealon is well known for his involvement with Aquarius Platinum Ltd and more recently Sylvania Resources Ltd.
Mr Hayden has spent many years working with the Ivanhoe Group companies with special interest in the South African platinum and nickel assets.
Finally, the company advised that it issued two million options to Veritas Securities Ltd as consideration for its role as corporate advisor to the acquisition of the Condoto project.
SHARE PRICE MOVEMENTS
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Shares of Bailey Minerals yesterday drifted down 1c to $1.19 after a big run from around 58c in March. Rolling high for the year is $1.25 and low 21c. The company has 21.4 million shares on issue with a market cap of $25.4 million.
The main assets of the company are two farm-in agreements on tenements in Western Australia.
The company can earn up to a 60% interest in the Mt Palmer project by spending up to $400,000, and up to a 70% interest in the Mallee Hen Point project by spending up to $400,000.
The company has retained a consultant geologist to commence a full desk-top study and data acquisition for both projects.
The Condoto platinum project consists of tenements and rights to explore for platinum in the Condoto area of the Choco Province in Colombia.
BACKGROUND
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Bailey Minerals NL is a relative newcomer to the market, listing on the Australian Securities Exchange on September 2, 2010.
The company is a dedicated mineral explorer formed in May 2008 for the purpose of acquiring and developing highly prospective mineral properties.
It continues search for outstanding projects that will add considerably to its portfolio of projects.
All potential commercialisation options for the company's assets will be considered with the ultimate aim of creating and maximising shareholder value.
BAA Price at posting:
$1.15 Sentiment: Buy Disclosure: Held
