With all the selling, the BOD will be nervous and will probably heavily discount to sub 0.001. They only have themselves to blame, the last big discount dilution was just lazy and inept on their part. I think before asking for the Authority to dilute further for "general reasons", the BOD should look at the overwhelming Administration costs, reduce their pay by 80%. They need to compensate themselves in relation to the company status. "A non profit making, limited activity, cash depleted seasonal exploration business", not a well financed operational big mining house.
The trouble is this company cannot afford to spend money developing two assets. It's not cash rich, there are no financial agreements, loans or other financial platforms it has access to. Further operational income looks to be nil for the next two years minimum. Therefore the business is set to fail. However the BOD are going to line their pockets until they are kicked off the AIM.
I won't sanction the power of further dilution to this BOD, without Bird having supplied a specific explanation as to the need for this request for extra shares. Also, the last placing price was derisory and as you say, those who bought in after that, for whatever reason, are already 40% down. They were stitched right up and it can't have been by accident.
I feel the problem is that the results are due after the GM. If the BOD gets the 'no' vote on these extra shares being issued, then the sp will drop further. If it gets a 'yes' vote then the same situation could occur, as the reasons behind the share issue are unspecific. General purposes!
So, a really positive impact of the sampling results, should they prove good, may be difficult to achieve, as we could well be starting from a lower low than we are seeing right now. Terrifying really.
I can't blame anyone for bailing on that last RNS, even though sampling results are not far off. The management here is so very poor, and not many shareholders will trust that the money from any additional shares will be put to good use.
With both silverton and Mutsk results due in 4-5 weeks it's the wrong time to bailout. I think those selling will be doing so based on the request to give the BOD more powers. All those who purchased at 0.0249 have lost 40% in a very short space of time, but their stockbroker will have ruined their reputation at the same time. This will be back to 0.018 -0.020 in a few weeks. But I also think that there will be large sell of before Xmas. Mainly by the LTH who cannot stomach another 6-9 month lull in activities whilst their holiday is savagely diluted.
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