Santana Minerals SMI - The next large Otago Macraes Gold Deposit ?

[audiav]

Last raise at 60 odd cents, I was picking them up in the weeks after as low as 50 cents I think. Looking forward to it.

[Daytr]

A lot to like about the company's prospects at the moment especially with gold price soaring high, but of course with the pending capital raising from now till 24th June that should hold the share price down for a bit. Not expecting much in the short term, but could well be a rewarding hold in the medium to long term. If they can get all the approvals and development work done and get into production under the current government they will be golden.

Possibly, although it's only $4M that they are going out to Shareholders for.
Once those applications are lodged, I don't necessarily see it as much of a handbrake if some good news comes fourth, or instutiional investors start getting in.

Santana doesn't seem to have had much coverage in Australia compared to here.

[silverblizzard888]

Possibly, although it's only $4M that they are going out to Shareholders for.
Once those applications are lodged, I don't necessarily see it as much of a handbrake if some good news comes fourth, or instutiional investors start getting in.

Santana doesn't seem to have had much coverage in Australia compared to here.

Yes in the scheme of things $4m is not a large amount, but when you add up the $31.2m raised from institutions also at $1.15 and the 35 million options with an issue price of $1.08 at the end of January. You're looking at over $75 million of shares at todays pricing that will eventually dilute the current share base. You'll need a really good announcement or some really big institutions to move that volume when the share price gets higher.

[Daytr]

Yes in the scheme of things $4m is not a large amount, but when you add up the $31.2m raised from institutions also at $1.15 and the 35 million options with an issue price of $1.08 at the end of January. You're looking at over $75 million of shares at todays pricing that will eventually dilute the current share base. You'll need a really good announcement or some really big institutions to move that volume when the share price gets higher.

Why would institutions necessarily need to move that amount of volume if those who bought the new shares aren't selling?
Or if they will need to enticed with a good profit on their investment. I.e a higher SP.

There was always going to be some dilution required, it's the nature of the beast.
$80M in cash with the options should easily get them through to BFS & also fund quite a bit of drilling. Exciting times.

Institutional buying is what I am referring to. I.e fund managers etc. coming on board.