william1982 is correct in that a CR will be required to continue with their CYU JV commitments
i noted this in previous posts, but also mentioned at the time, when the drilling and potential tripling or quadrupling of the JORC was expected, that the stock should be closer to 2c - 2c+ and therefore any CR should occur between 1.5c - 2c.
IMO it all depends on:-
A) how far they can push the envelope until they need funding B) the timing of the drill results and JORC update C) the companies motives and feelings towards any CR
had the drill results come out this week and tripled the JORC, you could reasonably expect a share price of 2c or more, then IMO they would really struggle to justify a CR of less than 1.5c to the market (25% discount)
however, as I said above, it all comes down to when the drills results will be ready and when they need to raise the next round of funding to meet JV requirements. if any delays in drilling and CR is required, then from current prices, perhaps 1c - 1.2c raising price.
if drill results come first, then there will be a nice trade up to 2c IMO, at which point I would exit and await potential CR update. all a matter of timing guys
ZNO Price at posting:
1.1¢ Sentiment: None Disclosure: Held
