Ann: US$23 Million Capital Raising, page-31

Hi Guys,

Walmak, there are many way to spin a Company Announcement. Sprott, IMO, certainly pulled out, possibly via not waiving certain pre-conditions (possibly around operational performance), or potentially BDR "choosing" not to meet a Sprott pre-condition (because they couldn't) which would thus allow the wording of the BDR announcement.

On the fly, I estimated a c. 50% dilution. Now I am back in the office I calculate it as 47% dilution .... IF everything goes well.

Here's my calc's ... happy to be shot down:



If everything goes well then 578.8m new shares will be issued, either directly, via warrant conversion or via Debenture conversion or a fully subscribed SPP.

There is, however, a much greater risk, as miningnut pointed out, that BDR are circling the drain, especially given the uncertainty of Tranche 2 funding being made available and the current state of BDR's balance sheet.

To me, at least, this has a very ominous look to it which is a great shame for all shareholders.

Cheers
John