market capital, page-25

" which is required to be maintained by the Company in accordance with its existing financing agreements"

My opionion is that the $3million needs to be put into DSRA regardless therefore reducing available cashflow/working capital. By raising the money for shareholders then theres $3million extra to be used for what they say as "working capital". My assumption is also that because they have employed this "prudent strategy to increase its immediate working capital to ensure that the Company can meet its development targets and obligations under its finance facilities." This provides alot more room to move. I'm also of the opinion that they are hoping to take advantage of the struggles of other companies that aren't fairing so well which there are a few. This may help them pick up tenements they either partly have an interest in or currently have no interest in for the future. Market timing if you will. Yes they are turning a profit and the hedgeing contract has alot to do with this but short term gains and long term gains are to be considered.

Yes the average hedge price drops but thats because they are burning into the hedge a little earlier to take advantage of the the higher grades from GG.

My thoughts only but there needs to be someone on the other team otherwise there wouldn't be any constructive discussion and just threads on people bagging out the company.