options value, page-14

Macleod

I do agree with you about the JSE listing with regards to Genorah selling their shares on it to allow the listing or any other major share holder willing to do so. But I do maintain my comment that Genorah can only reduce their holdings by roughly 80 million shares or a capital raising using the same amount without going under the required 26% BEE holding post joint venture. Genorah Resources has 60.4% of the current shares on issue in NKP.

Also not to sure if its wise to include Tabatse into the Garatau project just yet because if a minning permit or JV with Xstrata happens on Tabatse it triggers the 50 million USD to be paid to International Goldfields. With only 80 million shares to play with it would require the SP to be @ a minimum of 62.5 cents to raise that capital. Several articles have been written on the BEE paradox I'm describing in South Africa when it comes to raising capital without diluting the BEE parnters holdings below the required 26%. That is why I want the 90 cent options Genorah had that expired in December extended by three months or more, hoping they are in the money by then and converted which will allow them to sell more on the JSE for the listing or allow more shares to be allocated to raise capital. Of course to be fair the listed 35 cent options need to be extended as well :)