Word of caution. Investing is risky business. Any comments I offer are for the purpose of encouraging discussion NOT to get you to buy or sell any particular stock.
Having said that I like the potential of CLM. I had held some shares a year or so ago but sold after one of its rise spurts. As of late I have purchased again and I see positive things in this company's future.
Indications are that it has a fabulous deposit in the ground and is getting well positioned to move forward. To that end it announced just this past week that it has entered a bought-deal financing agreement to sell 20 million common shares at C$7.80 a share for gross proceeds of C$156 million (US$158 million) with a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. It said it will grant the underwriters an over-allotment option to purchase up to an additional 3 million common shares for an additional gross proceeds of C$23.4 million, exercisable at the issue price at any time until the 30th day following the closing date of the offering.
The closing for this financing deal is expected to occur by March 27.
They intend to use the net proceeds to finance development activities on the Bloom Lake property in Quebec, and may also be used to finance future acquisitions of complementary mining assets and for working capital purposes.
So great resource and financing being put in place to make production a reality.
The question then is: Am I missing something here?
Average daily volume (past 20 day average) is only 165K
No First Call Analysts are yet reporting on this company (per TD Waterhouse info)
With a reported world class resource and the money nearly in hand to develop it why is there not more interest in this stock? As I write this share price is currently $7.59 (up 4 cents on the day), below the privately brokered deal referred to above.
I look forward to some discussion on these and other points in the weeks ahead.
Successful Investing,
Keith
