Yes the size of the raising was confusing to me too. Potentially they are just doing it to satisfy the ASX that they have sufficient working capital for the company to function while they work out next steps.
Key phrase from the SPP market announcement was the below. Who knows who the various parties might be. Regis maybe? Hawke's Point ?
In addition to this SPP, the Company is also considering offers of capital from various parties. The Company has not yet determined whether it will seek to raise further capital at this time and, if so, on what terms.
From a practical point of view with the current board disarray and lack of CEO it is hard to see them going into production on their own. We've got the two largest shareholders (one being the ex-CEO) with divergent views on direction for the company.
My thinking on A$ gold price is that we are at a point of major structural shift that turns it from a trading range to a full-on price breakout above A$1850/oz. I'm sure you follow the local economic data and most of it is really tanking at the moment.
CMM Price at posting:
6.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
