nkwe capital raising

Spoke to my broker who has followed Nkwe Platinum for a long time and particiapted in their capital raisings in the past.

I am told that Nkwe is looking to do a placement to raise about $5-$10million (apparently its not finalised) for working capital.

From the half yearly there is $3.8million in cash and seems that Nkwe burn about $2million minimum per quarter. I guess they have about $1.5-$2million left in the kittly which is not much at all. The cash is getting critical now.

At today's price I guess the placement would be done at the 25cents range ... unless the share price moves again either for worse or for better. May have to throw in some 1:2 options (excercisable at say 35-40cents with 2 years time horizon) sort of things as well.

My guess is that this placement is going to either sophisticated investors only or "institutions".

Has anyone else heard of aything on a capital raising which is imminent (I say this is more imminent than the so called imminent BFS).

After the successful capital raising then soon afterwards we get the BFS release that has been about 18months delayed.

As said this is rumour on my end at the moment and there is no concrete evidence yet. My broker has advised me not to touch Nkwe since getting it through the capital raising will be cheaper.