Zeev's Turnips Patch-No Politics (ZEEV)

[DlphcOracl]

Joe Bob: Many of the junior gold stocks periodically use private placements of new shares (i.e., issuance of a large block of new shares) to raise money to fund exploration and development costs. This is normal procedure for the junior gold stocks because they either do not have operational mines and/or a revenue stream and cannot access private debt financing.

What separates the men from the boys (the well managed jrs. from the others) is that the best of the junior gold stocks will issue new shares when their stock price has just experienced a sharp run-up and they can sell their shares at a premium. Since these are highly volatile stocks, this is the of key importance. What the management of these companies hopes to do is sell the next block of shares issued at a higher price, etc., etc.

In brief, it is NOT unusual (and, in fact, is normal procedure) for the jrs. to have multiple placements over the course of a year to fund their continuing exploration and development.