This is a little speccy I've had my eye on over the last few days. It's a gold miner in Queensland, resources are:
Challenger - 67.k oz @ 2.3-2.8 g/t, but the company reckons they can run a 32k/year oz mine, beginning within 1 year with a 3 year mine life. They're also free carried to production.
Currajong - 26.4k @ 2.1-2.3 g/t
Mt Adrah - 239k oz @ 1.13 g/t
and a small deposit of 4k oz @ 1.25-1.5 g/t
What caught my eye was that two days ago it entered into a $25m option agreement with AusCan, a private resources company, where it created options to enter into JVs to develop its two big resources - Challenger and Mt Adrah.
As part of this agreement there was a placement to AusCan at 8c per share, which compared to a pre-placement price of 2c - i.e. a 400% premium, as opposed to the discount we're seeing on other placements. Once this good news was released the price shot up quite a lot, but its still only at 5.4c, which is a ~33% discount to the price the big boys are buying at just two days ago.
One problem with this one is that it's very tightly held, and there's not a lot of liquidity on the market - if you want to buy in for a reasonably sized parcel (like 10k) you might have to place your order, wait and hope - or pay up towards 7c where there's a bit more volume out there.
Overall this one looks pretty good to me - buying at a discount to what the big boys are paying - but I'd be interested in the thoughts of other ASF members? For me, the catalysts for a further rise in share price would be the completion of the placement on 22nd July and the completion of milestones to production on Challenger and Mt Adrah.