Ann: New Porphyry System Discovered at Copper Hill East, page-33

Hi JandJ
I think your assessment of the purpose of loyalty options may be a little off the mark.
The Loyalty Options were created as an internal capital raising mechanism that drip fed the bank account with money to facilitate good cashflow for the first 2 years.
It is also understood that the larger investors will hold off to the end before converting their options. This timing coincides with when the company may need solid money most.

The Loyalty Options are designed to
- Drip feed the company with cash for OPEX
- Encourage loyalty to the company.
- Reward the initial shareholders later down the track for their support.
- To eliminate to a high degree the costs of capital raising through an institution.
- To eliminate to a high degree the games played by institutions once they have a large parcel of shares to play with.
- To enable the possibility of long investors to increase holdings inexpensively within the first 2 years should unwanted attention be upon us.
- Most importantly IMO is to maintain a very tight register with large long term loyal shareholders growing their holdings.
- Finally to minimise existing shareholder dilution which is a very big problem with many small caps.

I agree that some takeovers are mutually beneficial and in the interests of everyone. I am not outrightly opposed to them, It depends on the deal and how it includes the existing shareholders being bought out.
I will fight with everything to block hostile moves against us. It is too early to worry about this though.
RED