The surge in the Galaxy Resources Limited (ASX: GXY) share price to a three-year high should prompt investors to ask if the miner could be close to pulling the trigger on a capital raising.
This is the perfect time to rattle the can as the S&P/ASX 200 Index (Index:^AXJO) closes in on record high.
Just ask our friends at Zip Co Ltd (ASX: Z1P), which went into a trading halt to prepare for a fresh capital injection. Never mind that Zip undertook a placement and share purchase plan only in December last year.
You can’t blame management teams to strike while the iron’s hot!
Why Galaxy Resources could be mulling a cap raise
That’s why I am half expecting Galaxy Resources to tap shareholders on the shoulder, particularly as the…