As you can see from the preliminary report DMR have collected some many cobalt properties. these are the start of their in forthcoming float . (I am limiting discussion to Co)
They are currently doing considerable work extending the existing knowledge.
I suspect they will raise say $5 mil when prospectus is released.
The important bit will be at what price will they raise funds?
If from the current work program they can illustrate some resource calculation of Co.and because of the anticipated world shortage expect the spotlight to be on their efforts.
This will be further magnified as problem with existing Co mines (Congo) are increasing in many ways (see Benchmark comments).
Thus we can expect any new share to be issued at a considerable premium.
And here is your answer.
The % the HXG end up with will depend on success of the preliminaries now being done.
The better it is the higher the premium, less shares needed to be issued to raise initial cash.
No doubt if the market rates their efforts high the future raisings will be done at much higher prices and mine development should be bankable
The full prospectus is keenly awaited possible not out to late Jan 2017 with listing late Feb 2017.
Hope this helps. IMHO it’s a great positive to HXG
HXG Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
