A Goldie with a substantial resource of gold, over a billion...

A Goldie with a substantial resource of gold, over a billion shares , a share price that has halved during this year and attempts at capital raising through entitlements that have been less than successful. Sound familiar?

The company I am referring to is Signature Metals Limited which is an Australian Company operating in Ghana. The company has a substantial JORC , however being an explorer doesn't have the capital to mine without capital raising and further share dilution, which stands already around 2 billion shares.

By now you have seen the similarities with PRE and are wondering what they are going to do. They are in the process of an off market take over by Liongold who apparently have the capital and economy of scale to make this a success. First though the liongold shareholders must agree to the takeover. The signature shareholders will receive a 1 Liongold share for 34 signature shares.

Not all of the signature shareholders like the idea. The directors all agree to take the deal.

This brings back Pre's position. Are they at present looking for a joint venture or a take over? Could they sell off some of their proven deposits to raise the capital to mine the gold in the Kelly deposit ? It would be good if there seemed to be a plan to follow rather than just sailing along watching the share price drop.

Signature who were in a similar position tried the takeover path.

Dogson.