dilution verus loan, page-3

evening Grasim, pretty hard to state a factual argument...


good question. I think I recall(?) in a past ASX release that the CEO mentioned how hard was to access funds. One would presume that with such a low jorc at this stage and shares on issue, that lenders would shy of it in relation to a risk scenario. In the past one of the major shareholders (the big H from Metung) has helped out. (per ASX announcement)

Plenty of other companies with less shares and larger jorcs out there.

Problem is that with the 7.0mil raising (if?) there will be 600 odd thou ordinary shares on issues with a jorc of 55thou oz. Now lets say they spend the funds on drilling to increase gold figures marginally, another capital raising will be on the cards, hence more dilution on marginally increase gold figures.

I think you know what I am talking about.

cheers