There are people on this board who have a lot invested in this stock..and I have been planning to go heavy in this equity as well and therefore tried to keep my post from being too frank so as not to create a panic as I'm sure there may be a legitimate answer. Your post does not alleviate my concerns but furthers them so I will be little more frank. How is the Apollo transaction different than investing in a junior miner? If you've had any experience with investing in junior miner's you will know what I am talking about. I have done some further research since my post and iron ore mining requires extensive upfront capital cost. Aquila, in Australia, is currently spending over $5 billion for construction and development of an iron ore mine.
Here's the headline:
Aquila says West Pilbara iron-ore mine could cost A$5,8bn
This headline is recent and easily found on google news. There are plenty of other articles on Aquila that you can find.
The Mount Oscar Project seems to be located in the Pilbara region as well; thus the inference is the mining development and characteristics will be the same as the Aquila project. Based on Apollo's PR, they are not even close to production let alone drilling these targets for a compliant resource estimate. It is common for junior miner's to basically give away their company to raise capital and thus Apollo stock has taken a hit. The reason it is so difficult to raise capital as a junior miner is that there are extensive risks involved with exploration and development of a mine and to take that risk the financier will expect a lot.
I hate to say it but investing in junior explorers is a gamble. There are many private equity firms or Canadian type brokerage houses who will invest in explorers for a large equity stake but this is not CNAM's role, nor do they have the balance sheet for this type of investment, and until I get a clear explantion of this transaction I will not invest in CNAM if these are the types of decisions that are being made.
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