re: Ann: SXG to Double Resources and Halve Ma...
Big tick here for SXG management. Been looking on, but was waiting to see how their financing/capital costs were going to be done, cause it looked like it was gonna take a really big capital raise to get to production, this might take that out of the equation now.
They will need to do some sort of raising, but it might only be a smallish raise now - around 5 million maybe.
Not sure how the $5million in cash for the acquisition is being funded - probably be apart of the financing package.
Great work by management here - dont think the actual tenement package and gold was the main objective here, more the plant acquisition, but the tenement does have exploration potential, but i think long term, SXG would be better selling it off later on the down the track, as its too far away from its current Marda Gold project for ore feed ide suggest.
Im a massive fan of the current tenements, ill hold off jumping in till all details of financing are announced.
SXG Price at posting:
4.9¢ Sentiment: LT Buy Disclosure: Not Held
