excellent announcement regarding desktop study, page-3

Re. Capital Raising question..

Six months ago I would have agreed that a capital raising was on the cards and the previous chairman was apparently preparing the market for this with broker presentations. This is pretty much aligned to the shareprice going from over 2c to sub 1c as investors prepared for a massive dilution..

However, I think existing shareholders were very concerned about dilution and voiced these concerns.. Instead of further dilution, the company then chose to investigate all strategic options going forward. It was since disclosed in an announcement that they had also been approached on possible funding options from interested parties.

The way I would like to see it move forward one of the following options (please note this is my opinion only and not to be taken in any way as a possible direction the company may take or a recommendation)
a) They sell the asset for a significant premium to current shareprice and return capital to shareholders.
b) They JV with someone on the project with free carry through of TAW to production. (ie. the other partner pays all future exploration and mining setup costs to earn there stake)
c) If there is not a decent deal put on the table, then we are issued a 3 month option for say 1c share (tradable) for existing shareholders (1:1 basis) where we can decide to exercise that option and not dilute our positions or trade our option. They then raise approx 8M which we would hope they could get to a JORC and BFS based on this. They could then re-review strategic options in a much stronger position...

My personal view only... I think these three options offer the best opportunities/interests for existing shareholders.


Please dont take my opinions as investment advice..