I'm not sure whether the market see this as a positive. Raising money at the bottom of the market for no premium is not exactly ground breaking. Definitely not fair to existing shareholders. RCF will make a fortune before existing shareholders break even.
RCF is there for RCF. They are buying a controlling stake for chicken feed and there is no guarantee that they will make a difference. I don't know how selling discounted shares to RCF to raise just $1.6 million is going to make any difference to get the Aravalli project approved. I would have thought it would have been smarter to try and get some of the money that is owed first. The issue of 90 million shares to Noble at .008c to extinguish the debt is OK in my book. At least that clears all debt and future interest to Noble.
Just look at MZI for example, RCF are investors in MZI, they only thing they have accomplished is to 1/2 the shareprice.
Hopefully RCF are better investors than La Jolla but I wouldn't count on it.
IRL Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
