Options repriced to 13c! Read the Quarterly

Hi everyone....check this out on page 7 of the Quarterly (released Friday Night at 6.20pm!)...

"Cokal, is pleased to announce the fund managed by Platinum Partners (Platinum) has extended the term of its bridging loan facility to 6 August 2015. The total loan for the project development to date is now US$10,065,000. The present intention is that the loan will be refinanced by the BBM project financing facility once it is in place. Under the extension agreement Cokal will grant Platinum 25 million options with an exercise price of A$0.13 and an exercise period of 4 years from the date of grant".

This is the first we have heard about this little morsel!

Previously, we knew that 100m warrants would be issued (exercise price 20c) to Platinum as part of the funding proposal - and on 11th August (ASX release BBM on schedule with further funding) we were then informed that 15m of these options would be granted on "drawdown of the additional (bridging) loan funds". The balance of 85m would then be granted following shareholder aproval.

But now they are getting 25m up front...and at 13c with a 4 year expiry

What is going on here? Is this on top of paying interest on the Bridging Loan? And at what rate?

I have copped a bit of flak throughout 2014 for my scepticism regarding the terms of the funding package. As the coal sector turned more bearish, and as the share price tanked to 14c I questioned whether there would be a possibility of changes to the make up of the funding package. I questioned whether this was why it was dragging out so long without sign off. Well...here is clear evidence already that things have changed. What else is on the negotiating table in terms of terms and conditions for funding?

This funding package has still not been bedded down (I know, and appreciate, we are awaiting Forestry)...but you can see plain as day, the material change that has already happened with one aspect of the package...the repricing of options.

Platinum are getting more and more control.

I would have thought that this little piece of information (buried on page 7) would have been worthy of a stand alone announcement to the ASX and shareholders?

If I have mis-interpreted this somehow, please let me know (nicely) but for now - my concerns have proven prescient. I wonder what others think?