First off a comparison of either WGO or SDL show the potential for the sp.
Only 40m on issue - yes they will need to do a capital raising but 10m @ $2 = $20m which can pay for a good amount of drilling. I expect any capital raising to be done at a premium to todays sp - reason being that this is tighly held and is the easiest way for anyone to get a chunk of shares.
In last weeks announcement it had a couple of fantastic points imo-
- "Initial Target of 1-2 Billion tonnes of DSO haematite grading between 60% and 62% Fe." Note this is initial NOT final and above 60%Fe is very marketable.
- "Aeromagnetic survey identified other prospects outside target resource areas." There is possibly more to come.
-"The iron appears predominately in a haematite form rather than magnetite as reported at some other Congo projects." This makes a huge difference.
Patience is reguired but I think the risk/return is well it.
MBM Price at posting:
42.5¢ Sentiment: LT Buy Disclosure: Held
