I also invest in a small Canadian project generator called SMD.v (Strategic Metals). They have no need for cash but have done some private placements to let some funds invest. These funds actually pay a premium on the share price to invest and they do so because liquidity in the on-market shares is so tight.
I too was unimpressed at the issue price of these shares and the fact that 3m options were issued to brokers. If the institution indeed approached AOP then the price should have been set accordingly, especially given the recent A$4.4m receivable from NCM, the A$3.6m in the bank and the drilling that is now underway at Boundiali and Rebecca which could, we hope, provide some excellent results.
Cheers
John
AOP Price at posting:
17.5¢ Sentiment: None Disclosure: Held
