Ann: March 2016 Quarterly Activities Report and Appendix 5B-VXL.AX, page-7

I thought I'd chime in here not because I am pretending to know all however:

Many moons ago (post 6/3/16) I spoke directly with Robert Mencel for 45mins quizzing him on the future of VXL. Zog is on the right track that VXL are anticipating <100% uptake of the Rights Issue and the announcement explains why.

"The Company appreciates the support of its creditors, however the existence of outstanding debt and creditors is an impediment to obtaining the implementation funding required by the Company to rectify the issues at Uley and return the plant to production."

Participation is important and the more there is the better the outcome BUT the minimum required participation is $6.3mil; effectively 1/3 participation. This clears the secured creditors debt.

"The Rights Issue will have a number of conditions precedent, including that to the extent that the unsecured creditors are not fully repaid from the rights issue, their outstanding balance is converted into ordinary shares at 1 cent per share."

The unsecured creditor's outstanding amount will be converted into VXL shares. VXL will then be able to move forward with effective $0 debt to refinance and get newly loaned capital to progress some of the upgrades thus heading into the right direction to revive the company.

Robert and I addressed other topics but raising $6mil compared to $18mil is a different ball game.

DYOR