capital raising, page-49

ConservativeTrader said:

"What's the point for shareholders if we are 100k gold producer with a share price of 2.8 cents?"
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If/when UML is a 100k gold producer, the share price will be higher. One might hope McIlwain might pass the reins over for Dargues development.

It's kind of lucky here that UML has the support of LG. CCU just did one of these "discount to the prevailing price" SPP's, not underwritten, and they have debt, so it's not the same case... but they have just been sent into administration for being unable to pay CBA back after a failed SPP. Had it been underwritten, it would have been a different ball game.

The comparable company to UML is really MOY, which has its own concerns. UML just needs to build up cash reserves, and make a good Henty upgrade. Then those in the SPP should get their money back and more.