capital raising likely

EME have ~$6m in the bank and a hellavu lot of committments considering they will have to (in order to progress Bigrlyi) pay for their share of PFS, FFS and BFS in the not to distant future.

I estimate the cost of all these studies to be at least $10-15million (EME share $5-9million) ball park figures mind. Dont forget they need to drill also on their other ground to keep it ticking over and increase the value of the company.

They may well have enough cash for this year at a stretch but not for much longer than that. tyypically it is much better to be raising money when you are not desparate, so they need to be out rattling the tin soon.

So where are they going to get the money from and at what price. They days of raising money above market are pretty much gone so it will have to be at a discount. Im guessing say 50 cents in about 3-6 months time. This is assuming good news to come on exploration plans and success as the share price would be in the order of 60-65cents by mid year.

The money will need to come from other companies as loyal shareholders maybe hard to find.

It fits in with the overall mode of operation of Paladin (Play down EME)and get a cheaper price.

My guess is Paladin to make an offer of $0.45c per share once the resource comes out. Shares go up to 60c. EME says no and gets bank rolled by another industry player and the shares go up to $1.00. Paladin increases offer to $1.20 and EME says no. Fesibility studies confirm what we want to here and that the project can make money. Paladin pay $2.00 in PDN paper and develop the deposit for production in 2013.

Anyone care to make another prediction.