"Ross Smith is back, yesterday lodging a prospectus with the Australian Securities and Investments Commission for the $4.5 million float of minerals explorer Red October Resources.
Red October is being spun out of Glenn Whiddon's Segue Resources with the opportunity to take up the nickel and non-iron ore rights at Segue's Pardoo base metals project in the Pilbara by spending $10 million over five years. Smith is chief executive.
As with his previous ventures, the colourful, occasionally volatile and sometimes divisive company promoter can load up with stock by exercising 10 million performance shares if Red October's share price gets a hurry-along. Smith's latest payday is conditional on Red October's 20? shares trading at 50? for at least 20 days and the company raising at least $2 million at a minimum 50? a share.
Red October is seeking $3.5 million with oversubscriptions of up to $1 million, having let a select group of investors in early via a $650,000 issue of preference shares at 10? a share, convertible into ordinary shares when Red October lists.
Buckle up for the ride."
ROS Price at posting:
35.0¢ Sentiment: Buy Disclosure: Held
