Rule #1 of CRs for junior explorers with low MC's: the CR price...

Rule #1 of CRs for junior explorers with low MC's: the CR price will be hit, hard. (As I predicted before they announced the CR price). So don't panic.

Rule #2: the more proportionate dilution from a CR (i.e. if the company is only undertaking a 1st or second CR compared with it's 5th or 6th) will negatively affect the likelihood that 'sophs' hold onto their CR shares. They know that a 15% profit now is better in terms of opportunity cost as the SP will be held down, unless some awesome news comes through - which it easily could.

Rule #3: don't, as a retail buyer, get sucked into buying unless you have a LT strategy that acknowledges the major risks involved in a company with nearly 3bn SOI. They are more patient than us. It's tempting to buy now, but very very risky. The sophs rely on retail to react (both by selling and buying) rather than sitting it out. Sure, no buyers = lower SP; however, that's where the real bargains are, considering the irons CTM has in the fire. Remember your shares are now worth 17% less than they were a few days ago - hence the price drop (combined with the CR price).

Stay cool. If you were in for a short term play, sorry, missed it. But med term could be promising, LT definitely promising (depending on how LT one means (1yr-5yrs).

I just hope they sort something out before Aug, otherwise they won't want to underwrite the Oppies - 3bn SOI is out of hand.