Considering Private Placements in Mining

[drbubb]

I just heard about a new pp for a Canadian Junior company.

 

What process will I go through in deciding whether to participate?

 

1/

Look at the chart

 

2/

Read the chatboards at: http://www.Stockhouse.com etc

 

3/

Visit the company's website

 

4/

Google the names of key management

 

5/

Ask friends who invest in these shares if they know the company

 

6/

Consider how much I can invest, how much I want to invest

[drbubb]

(as happens sometimes,

in doing this work, I have stumbled across another company whose chart deserves a closer look.

CA:A Abitibi-Consolidated Inc (TSX)

charts : Daily-10yrs : Daily-1year : Weekly-5years)

...

 

Here's the one I planned to look at:

 

1/

CA:RJXA Rjk Expls Ltd (TSXV)

chart: Daily-1year : weekly-5years

Weekly:

It is up 4x in just a few months- this is normally a warning sign for me. Now at C$0.23.

It has traded as high $0.40 in the last 5 years. The weekly chart suggests that a pullback to $0.10-0.12

would be a good buypoint. This pp is at 22cents, and so there is alot of possible downside.

 

2/

Stockhouse look... Question: what has moved it 4x in the past few months??

 

Market Cap: Shares Outstanding 27,963,529 x $0.23 = c$6,431,612

Small enough Mkt.Cap., that it is still worth considering

 

Officers:

Glenn C. Kasner, President & CEO;

Board Members:

Glenn C. Kasner, Jim Franklin, Barry Milne, Robert J. Kasner, Marvin J. Singer

(a family business? two Kasners are on the board)

News item:

Feb. 26, 2007 (Canada NewsWire via COMTEX News Network) --

RJK Explorations Ltd. (the "Company") (TSX VENTURE: RJX.A) announces the closing of its previously announced non-brokered private placement offering of units (the "Offering"). An aggregate of 3,000,000 units were sold at a price of $0.10 per unit raising gross proceeds of $300,000

(that was the deal to be in- a friends&family transaction? now they want twice that??)

 

BOARD comments:

(loads of postings in late Feb., very little since then. Why the loss of interest??)

link: http://www.stockhouse.com/bullboards/forum...&table=list

+

SUBJECT: BEST URANIUM BUY Posted By: alex64

Post Time: 2/24/2007 02:50

Louis Paquette wrote in most recent Investors Digest I dare you to find a better buy than RJK at this price. Apparently have an excellent drill target by Churchill. If it follows the other juniors in this sector we'll see .50 cents soon and then a buck and then who knows. The real mining bull market hasn't even started yet.

(Paquette must have taken some of the $0.10 deal)

+ +

 

My big concern is the stock from the $0.10 pp in late Feb, will be freetrading in 120 days: ie in late June. So during the "quiet summer months" you will see some stock in the market.

 

The time to buy would be July, when that stock is freetrading. If you can pick it up at $0.10-0.12 at that time, it might be very interesting.

 

3/

Website: http://www.rjkexplorations.com

 

I will look closer again in July, if the stock is cheap at that time.

[drbubb]

(here's another worth a quick look maybe):

 

Galore Launches $1.6 Million Taseko Exploration & Drill Program

 

Eighteen mineral prospects and showings are located on the property. Seven are porphyry copper-molybdenum-gold prospects and four are prospective for polymetallic base precious-metal veins.

 

A comprehensive program has begun and includes airborne and ground-based geophysical and geochemical mapping and an extensive drill program.

 

- -

 

GALORE RESOURCES INC (GRI:TSX-V ) :

Shares Outstanding : 17,453,321 x $0.45 = c$8,028,528

 

... is a Canadian-based exploration company focused on further exploring its prime property in southwestern BC, and acquiring additional targets in North America. Location Galore's current project is located in the Taseko Lakes region in southwest British Columbia, 210 kilometres north of Vancouver and 150 kilometres southwest of Williams Lake. The property has good road access from Williams Lake and by helicopter from Vancouver.

 

April 16, 2007 GALORE CLOSES $2 MILLION FINANCING WITH MINERALFIELDS

 

Vancouver, BC - Galore Resources Inc. (GRI-TSX-V) announces that it has closed its non-brokered private placement offering to raise Cdn $2 million, first announced on March 28, 2007. The total number of securities issued to the MineralFields Group in the financing consisted of 4,210,522 flow-through units priced at $0.475.

 

Each unit consists of one flow-through common share and one-half of one non-flow-through share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.75 in the first year after closing, and at a price of $1.00 in the second year after closing.

 

==

I'm not keen on shares financed maninly by flow-thru shares