AGD Gets Private Placement

ERIC ENG, eResearch (06/22/2010)
"Antioquia Gold Inc. has entered into an engagement agreement, with the intention to issue a minimum of 11,500,000 units and a maximum of 14,000,000 units at $0.22 per unit, for a cash consideration of a minimum of $2,530,000 and maximum of $3,080,000.

While Antioquia's current cash balance should be sufficient to finance the company's 2010 exploration program, the proposed private placement will provide much-needed funds to advance the Cisneros project into 2011 and to obtain an NI 43-101 resource estimate report.

However, the proposed private placement, if closed, will have a significant dilution impact on the current shares outstanding. The new shares to be issued will account for 18%, at the minimum, of the current shares outstanding and 22% at the maximum.

We continue to rate Antioquia stock as a Speculative Buy for long-term, risk-tolerant investors. Our 12-month Target Price remains at $0.80 per share. However, achieving this lofty goal requires a positive stock market environment for junior mining exploration stocks and good drill results from the company."

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