If I had the cash, I don't know whether I would take up the shares. That's the short answer, but before I go there ...
When I said I was complimentary of the structure of this rights issue, that was before we knew what they were going to charge in fees:
6% underwriters fee on total raise amount 6% managers fee on total raise amount $150k success fee S10k per month advisory fee for 12 months 400 million options at .4c with 3 year expiry to Empire Capital (copied from q's post) https://hotcopper.com.au/posts/37911513/single
This is an abject disgrace. It is a ploy for these greedy snakes to recover as much as they can, with no concern whatsoever for the company good or for long suffering shareholders. I agree with Salt https://hotcopper.com.au/posts/37911901/single
This is the essence of what the shareholders group had been predicting for months, but unfortunately we now seem to have lost the opportunity to take control of the company back for the majority of shareholders. A 249-D or or 249-F would have been a great way to force the company to face our genuine questions and vote on management change, but now we have the major beneficiaries of this capital raise THE VERY SAME organisation that has control of the company. It stinks to high heaven and should be outlawed, if only we had some alternatives.
The company structure is now ruined thanks to complete mismanagement and to make matters worse, one of the major perpetrators is still at the helm ...more of that later, but I won't stand by while history repeats itself.
Back to the rights issue. What I would be weighing up is the positive aspect of likelihood of a JV with Anglo going ahead (at least the exploration JV), against the uncertainty that is Cascavel. In essence, we have some positive results from wall samples etc ...but we have had them since Mark P was in control (out of control).
Yes, CDP-004 still sits there like a shining beacon in the fog, but it is hard to predict exactly what this high grade intercept of gold nuggets means in terms of potential profitability. Cascavel is a difficult mine ...even with the correct machinery and even when anyone wants to make a serious attempt at mining it.
The information in the upcoming tailings announcement will also have a bearing -glad they found where it was filed.
I plan to post some informational videos over the coming days, that may give a bit more insight (they are mostly over 6 months old, but may still give some insight). I abhor the prospect of Empire vacuuming up rights at .2c, when they are privy to ALL information in their dual position of company manager.
But that doesn't mean we wont be broke in 12 months time either.
Everyone is going to have to make up their own mind.
Cheers,
SJB
OGX Price at posting:
0.4¢ Sentiment: None Disclosure: Held
