I approach things from a long term angle most of the time, so I am very encouraged by the way KXL is behaving this week.  There is nothing better for a long term uptrend than a healthy pause to allow some of the steam to blow off.  We are getting that this week as part of an overall selloff for the entire market and the PM sector.  Again, that is good news.

The announcement of a placement tends to halt a hot stock right in its tracks anyway.  The good news is the appetite that big players seem to have to participate, and if it is true that the entire offering is already oversubscribed, then the closing date is just a formality.  KXL is going to be a much stronger company with all that cash in the bank.

I spoke to the project geo this morning to ask some specific  questions about the Golden Gate zone.  I am surprised on one has commented on that here yet.  This zone did not even exist when I went to visit the property last month.  It is a relatively small outcrop with quartz veining that has been exposed and sampled so we could be getting some news from that later next month.

I have put in a stink bid this morning below $3.50 to pick up a few extra shares for my trading float.  I think we will see at least one more sharp dip in the share price but it will happen too quickly to react if you want to buy cheap shares.  Either you put in a stink bid and hope, or just sit tight and wait for the recovery to start.

I think the company will wait until after the placement closes before we get any more assay results, and when they do come in, they are pretty much baked into the share price already anyway, so I do not look for much of a pop.  However, once they start testing the vein extensions that have been mapped, and perhaps crank out new drill results late this year, then it should be game-on again.

cheers!

mike