Market Wrap - Week Ending Friday 26th Oct 07

By Jason Fittler

What happened in the market last week? I have no idea as I spent the week in the Barossa Valley, you may have noticed the price of wine spike over the weekend, just doing my part.

Daniel Goulding has covered the week that was in his “The Closing Bell”; take a read to see a day by day blow of this week’s event.

Before leaving on my holidays I was lucky enough to spend some time with the owners of a new speculative mining company situated west of Mackay at Mt Coolon called Drummond Gold Limited. As you may have sensed from the name this is a start up mining company which is looking for Gold deposits.

The uniqueness of this company is its size and the men running the project. It is small only looking to raise $7 million with a market cap of $15 million on completion of the raising. The directors themselves have $2.5 million already tied up in the company which has been spent on drilling the area. To date they have come up with good results but they do need to double these results before they can start getting serious about mining the area.

The purpose of this IPO is to raise the cash to do more drilling to be able to prove a larger resource base which will lead to a further capital raising and establishment of a milling facility. We will have more information on this stock in the coming weeks. I will stress this is a speculative play, meaning only invest what you are prepared to lose, but if you are looking for something in this sector I would take a close look at this one.

Give our office a call and we will send out a prospectus. Our number is 07 4771 4577.