looks like a dilution of almost 100% likely, at 4c. That will raise about $25MM, enough for 45% share in 4 wells, a total commitment of about $14MM a well. in ordinary circumstances that should be enough. but clearly the last straw.
I can only imagine that if these wells are not commercial, then that's the end of the company. Pity because Canning has a huge potential and will be fire sold at the end of the year. Has anyone tried to raise funds for exploration drilling in the last 12 months? it's almost impossible.
In my view, the best outcome is for Magna to take the whole tranche, get Mike Watts onto the board and instill some quality. the current MD has done nothing for the value of the company. Proven reserves are still ZERO. Probable reserves are not bankable.
Good luck to all, I hope you get the chance to buy at 4c, sell at 5c and make 25%.
OEX Price at posting:
6.1¢ Sentiment: None Disclosure: Not Held
