why an issue when you have $150m cash?

All seems very strange, they announced earlier a share buy back of up to 10% (5m shares) because the share price is way undervalued but then only buy back a pittance of shares?
In the 18th May announcement “The board considers that the Tribune’s current share price does not accurately reflect the strong underlying cash position and value within the Company’s assets and the share buy-back represents an opportunity to add value to the remaining shares on issue.
In line with this, it is the Company’s intention to return surplus cash to shareholders through an on-market share buy- back program.” Maybe just return the surplus cash to Shareholders and forget the buy back.
They have now decided they need to issue more shares to raise funds when they have already stated they have surplus cash? Sorry am I the only confused here?
Will the shares only be offered at the discretion of the Board, to affiliates of the board?
Will the shares be offered to all shareholders?
What price would they issue the shares at given they have already said the share price does not reflect the value of the company.
The shares issued could be offered at $1 and raise approx $5m. Why would you do this when you have Gold on hand at 30 June 2012 which has a net realisable value of $131,674,238? (note 12 P69 of Annual report)
This excludes the cash on hand, other Gold in Circuit/transit and Stockpiled gold inventory valued at a minimum of $22m. So this company has $150m in gold, cash and inventory and 50m shares on issue ie a cash backing of $3 per share which excludes future income from EKJV and any other projects held.
Maybe the issue price should be at a minimum of $3 but somehow we cannot guess what these guys will do. The company secretary advises in his notice of annual general meeting that the funds raised are to fund ongoing development. It would be good to get an update on these ongoing development projects and some results. Last Japa Project Update was 22 November 2011, nearly one year ago. (The Annual report did not provide any further update on Japa)
Still the question is why would you raise funds of $5-$15m (dependant on issue price) when you already have $150m?
Perhaps they should announce a $1 per share dividend and bonus issue of 50m shares to shareholders and then raise funds via an issue to institutions (say 15m shares at say $5) rather than hammer existing shareholders.
Why is Rand also following suit announcing a similar issue?
I would be easier if things were a little more transparent
Hopefully this will be fully explored at the forthcoming AGM in Kalgoorlie on Friday 30th November 2012.