Eshmun has a very good point about the situation, IMO.
SJ is trying to raise capital, not for the first time since his appointment. He has tapped the pockets of his network previously and, without exception, if these guys had held, they are down significantly.
Fool me once ... blah blah.
As such these institutions will be very circumspect now and will want either a hefty discount to compensate for risk or will need to do a lot of DD prior. It will not help that sector sentiment is poor once again as the USD looks to be breaking out and USD gold at risk of breaking down.
Now is not the time to be brave for a retail investor.
Speaking from personal (and costly) experience, I was involved in a similar situation in 2011-2012 with a small miner with operational issues in Tasmania but, what I thought was a lot of possible upside (this was when silver was approaching >$40 oz).
I was the main participant in a private placement to allow the Company to overcome 'temporary' start up issues and plug a liquidity gap until production ramped up and sales/ cash flooded in.
My vision was that I/ we were like the Bear Cavalry, coming in to save the day, and others would follow when they saw that things were turning in our favour:
However, I found out very quickly that the real situation was more like this:
The point being, it can be very expensive not to face the reality of the situation.
I will continue to watch and see what happens here .... but I ain't getting on some clapped out donkey again !! And I would think a lot of money managers in Toronto and Vancouver are thinking the exact same thing.
Cheers
John
BDR Price at posting:
8.3¢ Sentiment: None Disclosure: Not Held
