Ann: Share Purchase Plan Closed , page-6

My belief is that the board felt they needed to have a SPP for the sake of existing shareholders to give them the same opportunity as sophisticated investors had in the placement.

In terms of did they desperately need the extra money? I don't think so and believe they would like to raise money at a much higher price in the future.

So why did they raise so much (5M) down here? Because also given everyone piece of mind that they don't need to dip back into the market for more money in the near term (given also the market may do a pull back from here). This should last them until at least the end of the year where I suspect they can (if needed) raise at a much higher price and less dilution.

The board is a good team and I believe strongly in the story. Patience is again the key.

And for those concerned about the spot price of iron ore. Look back to the TAW announcement from last year of the desktop study. They believe they can mine this for $50/t Opex... A lot of iron ore projects would go under water before it got anywhere near this price. I believe there is a bottom in the iron ore price around US80-US90/t so comfortable with $40/t profit.


My opinion only... Not investment advice. Do your own research...