a little bit of perspective , page-9

Flawed logic all around Mboose.

Things you should note (that I remember through reading past announcements):

1. SPP was to raise only $1m
2. There was a limit imposed on the # shares allotted to a single person or company
3. It was not aimed at institutional investors but "general investors"

General shareholders are always panicky and are only "in" when things are going good and smooth (otherwise they start complaining and move away or complain some more without cutting losses). Hence the lack of confidence or "lack of support" from "general shareholders" means very little for a "going concern" company.

So one would ask why not raise through institutional investors?

- If you go back through older posts just prior to the SPP you will see how many people were complaining that instos were getting preferential treatment. Besides instos will only take on so much exposure in what is obviously a speculative investment (v. high risk, potential high gains).

So what alternatives did the company have (who believe that they have done everything right and need somethings to fall into place to deliver substantial returns to the shareholders)?

1. Raise the capital somehow or the other and get what they believe in, "over the line" some how
2. Give up (all the effort they put into securing a land lease, a prospecting license and what ever little respect they have managed to build up among the local community), cut losses, hand everything over to Sumitomo who is obviously a huge fan of "land banking", and after all that, end up still having to raise money for the other projects when obviously the investor community would be pissed off with them for "investing and then pulling out" from the Soloman deal.

You have to always think in terms of the future in my opinion. What has happened in the past is "sunk cost", so reiterating what they should have done is irrelevant. Above 2 options were what they had prior to the Bergen deal. Which one would you have chosen?

Having said all this I'm absolutely pissed off with my self for not having the brains to sell to minimise capital erosion and get in at lower prices which would have done wonders to my holding(behavioural finance trait "regret"). But they again there is no point in that as well coz it has already happened. Its either I sell now and accept losses, or believe we have hit the bottom and its only upside from here....

All IMO. Please DYOR.