As said before, I like JAG as a story. Also said before is that I don’t like the lack of gold mining expertise and the overburden of numberheads at the director level. Gold miners are best run by gold miners, not slide-rulers. I certainly don’t like this unecessary dilution, as adding 15m or so shares to the 53m oustanding isn’t something to be taken lightly. Meanwhile…….
Colossus Mineral (CSI.to) announced a $21.5m placement this morning. This is about as subtle as a poke in the eye with a pointed stick. Here’s how it goes, folks;
1. Stick your diamond drill machine into a place where you KNOW you’ll hit a beautiful return. I mean if lil’ old me, in just one morning, can grab hold of this PDF dated 2002 that says the Serra Pelada zone just drilled would be hot, would you call this info a brand new discovery?
2. Announce the results with pipes and whistles, and make sure all your Canadian friends with CFA after their names hit the phones and make their client base fully aware of the numbers.
3. Don’t mention anything about the very iffy local politics in Serra Pelada.
4. Watch that share price rocket on volume
5. The very next day, go to market and squeeze ’em all to the tune of $21.5m.
|Jan 21/09||Jan 21/09||Anderson, Patrick Fergus Neill||Direct Ownership||Options||50 – Grant of options||200,000||$0.480|
The Canadian markets, the chummy-cosy managers of junior miners and the sleazy brokerages that have them all by the balls are a prize joke. And the funniest people of all are you retail shareholders up there who fall for these tricks every single time. Isn’t it about time you got yourself a regulatory body that actually does something about the corporate criminals that ruin your investment life in quasi-legal ways? Nah…don’t wanna ruin a good thing now, do we……?
Ventana Gold: How placements can be done to benefit all concerned