Positives:
1. Lots of cash to expand resource and test some of varied targets (Au and Cu/Au) + scoping study (even though the ASX's new rules say you can't release scoping study results without a clear intent to mine)
2. Oversubscribed so I'm hoping decent post raise marketing will get everyone to top up.
3. Research coverage... PSL now has put a lot of clients in and they'll expect coverage. If they don't provide it, then I'd be very annoyed as one of these new investors.
Negatives
1. Too soon (and therefore too low)? We just had another great announcement from the recent drill campaigns which just makes that resource upgrade more promising.. raising before the past drill campaign results were finished leaves the risk that PSL took too much value off the table.. new investors are benefiting from the last raise (which funded the current drill campaigns) rather than just taking a risk on the drill campaigns this will fund. i.e. risk was set too low for prospective reward. Offsetting this is a pretty volatile outlook to the year end, so maybe a good idea to get cash and not have to worry about markets for awhile.
2. Current shareholders need to be looked after.. even an SPP (which can be undertaken under 7.1) is always a good idea to ensure their continued glowing support. After all, they are your best investor relations team.
Either way, a very big fan of the company and it's methodical approach to developing this project. I'm just wary of the wolves in suits that tend to prey on this end of the market.
