West African Resources Raises $35 Million to Advance Pre-Development Work at Sanbrado Gold Project, page-6

Price got worked down in my opinion.

Nevertheless management weren’t forced to do the raising at that price so they have assessed it as being in the best interests of shareholders and I tend to agree.

We are at a pivotal point in the cycle and rising interest rates in the US aren’t going to just end with no pain to the equity markets, the faster they rise the less attractive the stock market gets on a risk weighted basis. No one knows the future for markets or for the gold price so raising a good amount of money now gives the company breathing space, no matter what happens.

The strategy of drilling hard and drilling early is really the only way to go unless as a director (owner) you are lucky enough to exercise voting control over the company. The next feasibility needs to maximise the value of the project as much as possible and it also looks like the company is “looking over the horizon” when it comes to future enhancements to the value of the project.

Commencement of the underground access to M1S doesn’t only speed up the timeline to first production, it guarantees that the high grade or will be feeding into the mill from day one (hence reducing the pay back time on any debt that might be raised) and provides a more economical platform to do extend the resource at depth. As I’ve said many times this deposit good stretch for vertical kilometres. How much of this potential is factored into the long term value of any mine that might be built at this location? Answer: None.

The 60,000m of drilling per annum is also a very bullish declaration that there is a new African gold company on the block. We don’t really know what this level of drilling will bring but if it is directed at the current known resource areas there is little doubt it will build the mineable reserves and expand the resources further, not to mention other new possible discoveries that could change the picture all together.

I’m more confident on this stock now than I have ever been and will continue to acculumulate through good times and bad (ie up and down the share price chart) as I think if Richard can build a mine he will have a great mine and will cement himself into gold mining folklore.

I’ve met Richard and he is still a fairly young guy from Scarborough in Perth. If you know that suburb the average aspiration among its residents is to work hard (mainly tradies) get some dosh together and have a good time. It would be easy for him to take the money and sail off into the sunset and be forgotten as the guy who made it rich selling a gold project in Africa. I’d prefer that he holds the company together and makes himself even more rich, in so many ways, as the guy who built a world class gold mine in Africa. There is plenty of time to retire later Richard, this is the best chance you will ever get mate, see it through for yourself and everyone else. Esh