Info only9 Dec 2020 19:39
I spoke with a friend of mine a month or two ago and said that I could see a rights issue coming at some point. My friend said all costs are covered by our partners. Its annoying to see comments by people on the placing and non have mentioned that the company had little money on 31.08.20 as explained in the accounts with 356,000Dollars cash only. Yes Newmont and Agnico covering drilling costs etc and yes we did get a payment of around 500k in sept and November but I ask the question how far would this money go to pay the wages of our directors two stock market listing and now two brokers I would guess a million or two and I think this is the reason why they had a rights issue. Also think its best to have one now as the share price got ahead of itself and if directors are going to buy better now as if good drilling results the share price could be a lot higher and then the directors would have to dip deeper. The directors have already got options to buy shares in July over a few years time but it would be better if they had skin in game now and not just a few k either.
Expect more rights issues down the line as 4m goes nowhere and a possible purchase perhaps next year and they will nee more money to buy. The company cant just go to bank and ask for a loan so the only way is to issue shares. Hope people now understand why Brad has done the rights issue as the company had not much cash. We are in a good position now so be patient.
If the directors are gunna buy then they need to do it in next few weeks as they will know how drilling is going price sensitive info so only have a small window of opportunity the closer to drilling results the more info they will have so in my opinion now or Jan when results come out then if the do make a purchase might not be good for directors. If I was Brad Id be buying this week.
Info only not ramping or deramping but trying to explain the reason for the rights issue. Also I dont think its a good idea to email CEO as if he was to give any info out it could be all over the boards and price sensitive info would not do him any favours.
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