After sleeping on it, I think this Capital raising is the best of a bad situation 6 or 7 mill will supply the funding, for necessary bits, and engineering.
One has to admit... without the dosh, they can only proceed at a Snails Pace.
Cheers
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After sleeping on it, I think this Capital raising is the best of a bad situation 6 or 7 mill will supply the funding, for necessary bits, and engineering.
One has to admit... without the dosh, they can only proceed at a Snails Pace.
Cheers
I’ve heard rumours of Indians and Chinese ‘showing interest’ too (also – rather curiously, I saw a group of Japanese in business suits be shown around the main street in Westport about early Jan this year – probably unrelated). Also, the latest announcement mentions ‘qualified investors’ and book build. At best, it is institutional – more likely, SE Asian steel mills securing a supply of something that is actually quite rare – the present price funk is only a China generated piece of mayhem.
Also – met coal has definitely bottomed – they might be starting sooner than Dec 2014.
If I was doing the deal and giving 10% of the company away at a discount I would be wanting something in return....perhaps a guarantee to take (say) 30% of production once the price reaches an economic level again.
No need for BRL to be a loser on this
Bit rough on those who were paying 15c to 20c a few weeks ago,
"123 million fully paid ordinary shares to institutional and other sophisticated and professional investors at an issue price of AU$0.060/NZ$0.065 per new Share"
A substantial dilution to the value of this company, to the benefit of a handful of more 'sophisticated' investors than you and me. Feel ripped off? I would have preferred a rights issue.
Discl: still holding, just.
Interesting to note - In the accompanying document to today’s market announcement; ‘Bathurst Resources business Update’ , p14 - If you look at the aerial photo of the Collingan’s farm area where there load out facility is going – and compare that to the same area on google maps – there is already quite a lot of earthworks and new structures. Looks like they might be ready to rock n roll sooner than later.
Thinking it had bottomed out at 8cps(NZ) bought on the uptrend at 8.6, resisted selling at the small peak at 10cps, and now look where it is..
funny game this
I'd be very surprised if we don't see it bottom this week (perhaps today in the 7's). This is a company well managed and with a bright future...even if they have disadvantaged the other 90% of their shareholders with an exclusive favourable new issue. Their AGM's not until October but I would've thought this new capitalisation requires a special meeting to get shareholder approval.