moving forward, page-29

The more I think about it the more I am inclined to believe (or at least hope) that this is not a run of the mill working capital raising. The details of the capital raising will establish the credibility (or lack of) of the COO Tony Simpson who "has a particularly strong operational background and the necessary development and production experience to manage our projects toward production" (extract from announcement of appointment of COO 19/2/09).

A mediocre management team would be short-sighted enough to plan a CR for short-term capital needs, which at the end would be counter-productive as it would result in unecessary dilution whilst not achieving any key milestone. In all likelihood such ad-hoc CR would not be fully subscribed anyway; I for one would probably not participate in any such piecemeal capital management strategy. I have experienced such management practices in another small-cap company, only to see its SP drop from 31c at which shares were offered as a "reward" to loyal shareholders to around 4c.

I don't believe PEN's management is of this low calibre. I hope this announcement will be the 2nd step of a carefully executed plan towards production; the first step was the announcement that followed the last T/Halt last month - that was a pre-warning to all of what is to follow. And what I hope is about to follow, is an announcement that PEN has secured a strategic financier. An entity that has taken notice of the potential resource PEN is sitting on, has, or is in the process of verifying this resource via some sort of due diligence and has decided to take a long-term interest in the company. Enough interest to commit funds that can be released progressively as further milestones are met by PEN. Enough funds that will take us to the first sale of yellowcake without needing any further source of funds.

Of course this is all speculation on my behalf and may turn out to be wishful thinking, but if the company is serious about becoming a serious producer then they need to approach their future needs from a strategic perspective that will build credibility in the market rather than erode it.