january action, page-5

I think it also demonstrates pretty clearly that with regard to capital raisings, they are damned if they do and damned if they don't.

Announce a rights issue, SP tanks, underwriter/company pulls the plug.

Use Fortrend's facility, fortnightly drawdowns, fortnightly selling, SP takes a hit.

Do an SI placement, they all sell out for a quick 30% profit, SP takes a hit.

Where do you turn? Raising capital is obviously very difficult, and the SP always seems to suffer as a result.

So where do they turn for the next inevitable CR?

Given how low the SP currently is, I honestly wouldn't be surprised to see another rights issue attempt shortly. 45m shares (and some oppies) at 5.5c each to raise $2.5m - something like that maybe?

Of course there is also the targeted investor roadshows from ~March onward. Question being can/will IK wait that long before raising more cash? At least we know there are no more outstanding bills from GC drilling. But with $850k in the bank at the end of December, likey to be ~$700/750k now I suppose, I dunno if he will wait that long...

Either way, we have a General Meeting coming shortly IMO. The placement capacity under 7.1 and 7.1A is fast running out so they'll need to clear out all the previous placements. Plus, shareholders need to approve IK's new 3m oppies (he'll then have 3m oppies @ 7.5c expiring 1 Dec 2013 plus his existing 1m oppies @ 25c expiring 31 Dec 2013).

Half-yearly reports to come later this month too I believe.

The one can of worms is stil the LV tenements IMO. When they are finally granted and assuming desktop study results are already available, we should get exploration targets (remember, likely to be both black and brown coal targets). That will be very interesting IMO.