tinkler and eoc, page-12

From my calculations, placing the shares at 40c meant an additional 4.15% dilution for EOC (when considering all the shares on issue + shares on escrow), as opposed to the scenario had they placed the shares at 55c and put the company in a potentially very vulnerable position in the process.

$12 million @ 55c = 21.8 million shares
$12 million @ 40c = 30.0 million shares

The difference (8.2 million/193 million) = 4.15%

EOC know, much better than any of us here on hotcopper, what is likely in the ground at Talwood, Pretoria Hill, Essex and all the other unexplored prospective tenements. They also know, much better than us, the full potential they believe they can reach with Rockwood and how much success they can have developing MDS and Inderi (knowing the funding, port and rail obstacles which will need to be addressed in the future).

I'm more than happy to trust that Endocoal knows what they are doing (and what they were doing by turning away Tinkler's 55c share-purchase).

I thoroughly suggest you all to read this article and see what Nathan Tinkler has achieved by 'merchanting' coal assets.

http://www.forbes.com/global/2012/0213/australia-billionaires-12-coalfield-trade-nathan-tinkler.html

There is an incredibly high chance that if Tinkler purchased 15% of EOC, he would:

1) dangle his parcel out to a near-term T/O suitor (as long as he is happy with his profit), or

2) hold onto the shares until his Whitehaven/Aston merged comapny could fully take-over EOC, with the acquired 15% EOC holding being a fantastic blocking stake and starting step for him to succeed.

This all reminds me too much about SDL (Australian-run Africa Iron company). Ken Talbot's estate sold his 15% holding to a Chinese entity, who then acquired roughly a further 4% of SDL shares on-market. Next thing you know a takeover offer is submitted. The very first thing that alot of shareholders (myself included) thought when the Chinese company bought the 15% stake in the company was "Fantastic, a chinese company willing to buy a larger amount of shares at a PREMIUM- great news!", then as things evolved, most shareholders found themselves cussing at the Chinese company's presence!

Or how about Adelaide Energy (Oil and Gas).

ADE raise capital by issuing 20% of their company (in shares) to BPT at a premium to what was the current SP (just like EOC). Almost instantaneously, BPT acquired ADE, leaving alot of ADE holders disgruntled.

I think it's pretty clear from this action that either EOC want to continue through all the way until development, or at least wait until they've added further value through their currently explored or unexplored tenements. If the company was so absorbed in allegedly 'selling EOC off to the highest bidder', why would they have raised what should be enough exploration capital for the next 6 months? Why not make a placement of a fraction of the size (enough to pay admin expenses until a take-over is achieved)? I do believe that EOC want to push through with advancing their projects and regardless of what happens in the future I'm very happy with the decision EOC has made with this situation.

Sure, there is the chance that it may have been better if EOC did allow Tinkler the 55c placement (especially for the short-term), but there is most definitely a very high chance that giving Nathan Tinkler the shares could have severely limited Endocoal greatly as well.