Well, the share purchase plan has concluded and CJO raised more funds than I expected so that's a positive. The fund raising in March 2009 was disappointing at $1,048,090 for the same sale price, so we can be relieved CJO gets to live another day. People can point fingers at the negative market sentiment, to why the sale was undersubscribed, but the savvy investor still see's much risk ahead for the company, to allocate more of their hard earned money into the pot. Especially when many of us are still exposed to big losses on paper depending on the timing of shares purchased. If/when the confidence level is there with actual results, many will buy in at higher levels without regard to share pricing, based on proof that we can transition from an explorer to a producer - until now easier said than done.
It will be interesting to see what effect Goldcorp's decision has on trading? When they back out and fold their cards all those sell orders that have melted away could resurface. The long term CJO investor knows the Cerro deposit does not fit the corporate style of GG. The grade is to low, the deposit to small and historically GG does not take a weaker stand in many projects. So we expect GG to back out and I'm sure management does to.
We are told that mine financing deals are all imminent regardless of what GG decides. I respectfully disagree that CJO can pick and choose from multiple deals including debt or share placements or mineral streaming? Maybe a year ago but not today. I hope I'm wrong and they can deliver a favourable deal to shareholders post GG decision. But if I'm right, and months drag on with no financing deal, then the vultures will begin circling and our hand is weakened considerably.
Many on this board can remain positive and upbeat on our prospects. I remain realistic. We have no mining permit, no ownership land for the mine, or CAPEX funds raised. When the company can deliver to us all these tasks completed then I will be able to shut up, and join the rest of the boosters.
CJO Price at posting:
7.6¢ Sentiment: Hold Disclosure: Held
