Whether the company is being sold or this is just another capital raising is entirely in the hands of the shareholders. This includes the board, who have significant skin in the game.
If nobody takes up their entitlement, it's a sale to Magna. If we all take up our allocation, it becomes a cap raise.
The good thing about this setup is there is no broker taking a cut regardless of the outcome, or charging a fee for the privilege of underwriting the cap raise.
The bad thing in the short term is that those who wish to sell will drive this down to a tick or two above the cap raise price, which makes our tradeable options worth next to nothing.
I'm hoping the recent drilling program adds some ounces to the resource in the interim. That should help boost some confidence in management.
CCU Price at posting:
13.6¢ Sentiment: Buy Disclosure: Held
