Once again KMN has come up with the goods in a difficult environment for capital raisings.
The 60 percent oversubscription is especially stunning given the company is a junior explorer.
This result represents nothing less than a huge vote of confidence in the company's future.
Nevertheless, I expect a muted negatively biased response from the vested interest naysayers and knockers (aka predator-shorters).
Next step is the TSX listing to create the merged entity with all the benefits that will accrue to the AMALCO as a consequence of Canada's 'friendly' approach to junior finance.
A combined entity may also afford an increased measure of protection against the greatest threat to unlocking CDG's AU_AG value for shareholders - the spectre of takeover.
Hostile corporate action tends to happen at full feasibility stage. This would mean around late 2010-early 2011 being my guess.
Hold onto your hats loyal holders because this is going to be one heck of a ride!
Cheers again.
KMN Price at posting:
9.0¢ Sentiment: LT Buy Disclosure: Held
