Interdum stultus opportuna loquitur...

Friday, November 26, 2004

Another SPP to Take Advantage Of...

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Hot on the heels of yesterday's Share Purchase Plan (SPP) for Virax Holdings (ASX: VHL), The Red Menace has trawaled through the announcements and found another one.
This one's over a pretty volatile and thinly-traded stock, so it's not for the faint-hearted.
D'Aguilar Gold Limited (ASX:DGR) announced an SPP tonight, with the shares offered at 7.5c ith a maximum allocation of 66,666 shares (i.e., $5k). the last traded price for DGR was 9c.
The stock has been in a pretty steady downtrend, punctuated by bursts of buying... in other words, it's a typical gold speccie.
It's had a couple of dips down to the 8c level over the last 12 months, but that level has held - but I wouldn't call it "support" per se.
The record date for the SPP has not yet been released - but at present the only eligibility requirement is to be a registered shareholder. Again, purchase of ONE share will entitle folks to participate in an issue which is taking place at 16.7% discount to the current share price.
If the share price holds its current level for the duration of the SPP, a $5000 allocation in the SPP would be sold for exactly $6,000 - a 20% gain over a very short holding period (usually a couple of weeks)
An image of the announcement is stored at this link.