Ann: RNI Commences Drilling Of Priority T10 Conductor Target, page-38

Thoughts of the day:

1. I agree with Shady - don't know why they waited so long. It is the waiting and the delay that has killed the share price. NOTHING ELSE HAS CHANGED. If anything, the gold price has gone up in the last 2 weeks. Whatever the prevailing share price, when you offer a Capital raising, you have to offer a discount ... and if people realise the CR is coming, the share price declines ... and the longer you wait, the more it declines. This could have been done 2 or 3 weeks ago when the share price was 19c .. with a raising at around 15c.

2. I think $4m raised from SI's (sophisticated investors) is a STRONG raising. In March, by comparison, the contribution from SI's was $2.4m. To all those negative types castigating the sum raised, I say: pffft.

3. They hardly seem desperate: they didn't even ask me (and they did ask last time) ... and I'm not THAT unpleasant to deal with. So, I think you can safely throw away all the desperation theories.

4. Last time was followed up with a SPP to all shareholders at the same price, about a month later. I think they should have announced this now, and done the SPP at the same time as the trading halt, and just get it all over with, if that is the intention to follow up. That is not what they have done ... so presumably, we are looking at a SPP at some point in the next month or so (or some other imminent announcement). Probably waiting for drilling results to foster some excitement.

5. I maintain my view that the BOD should never have bought the MZM lands (for shares and cash) if they did not have a funding plan in place. This has seriously harmed the share price:

(i) because MZM has sold off millions of the shares they received ... , and

(ii) because the BOD have been forced into further capital raising (at discount) to pay off the cash component.

That's a double whammy - smacking the share price from both directions. They have no use for the MZM land at the present time, and no means of production (in the absence of finance) ... so this is a clear case of putting the cart before the horse /// or just hoarding for the sake of hoarding / control. You don't have to take up an option: that's why it is called an OPTION ... and they could have probably picked up the same asset for a fraction in the future, if they really wanted it. MZM must be laughing. This simple business decision leaves me, more than any other aspect, questioning the competence of those running the company.

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Overall, the real news of the day is the $4m raised from SI's, and that's a pretty strong raising (albeit at a ridiculously low entry price --- half the price of 2 or 3 weeks ago). Hopefully, we shall see some nice drilling results in the near future ...