where do we get the cash from, page-10

The results from the drilling programme that is presently underway will most probably not be available until after June 30.

So, whether they're good or poor won't be known at the latest date that the holders of the June 2012 unlisted options have to exercise them at 1c in order - as I understand it - to get another option at 1.5c if paid by June 2010, or alternatively at 2c if paid by June 2011. If they exercise them after those dates, then they won't get the additional option.

With the sp of the fpos likely to stay above 1c (I sure hope so, anyway), then the holders would almost certainly exercise the options before the expiry of the "bonus" period. (Maybe the management delayed the start of drilling until now - as a precautionary measure - to ensure that they were exercised {lol}.)

There has been relentless selling of the stock for the last 2 weeks. Perhaps the holders of the unlisted options are selling now to fund the exercise of their options? If so, they would only need to sell less than half the number of fully paid ordinary shares - at say 2.2c - to fully fund their exercise sum at 1c.

To do so may may sound like good business sense, but if they believed in the potential of the company owning 6 Billion tons of iron ore - as considered likely by an independent analyst - then, if they had the funds (after all, they were "given" to supposedly well funded sophisticated investors), then it seems better logic to hold their fully paids, as well.

Yes, it is an unknown guess that the holders of the unlisted options have been selling fpos recently. If it is true however, then the sp would probably still be 3c now if they hadn't been selling.