Excellent piece AK, it's well written and exactly correct imho .... this is the same in all exploration juniors that are publicly traded, that any placement coming free-trading, and especially the larger ones, will create 'a significant overhang' on the market .... and there is nothing wrong with it, just part of the process, the thing is the speculator cannot get away with ignoring its effects
The effects aren't always immediately negative, either ... sometimes the shareprice gets a little 'gentle guidance', if you know what i mean, around or just after the free-trading date, perhaps helped by promotion based on what they're doing with the money, drilling and assaying, or in this case here doing a bulk sample of a placer property
That's what's important - what they do with the money they raise, how much they get accomplished, and what kind of luck do they have in results ..... you take that, put an enterprise value that you personally consider fair onto the project, then assess the company's future prospects for getting more financing and/or more results, then compare your perception of that whole against the current market cap
Mines are not easy to find, otherwise everybody would have one ... other side of that coin is, good mines can pay off ... wonderful business to speculate in, i recommend it to all ... but careful, don't spend the rent money -g- ... cheers
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