Ann: Trading Halt, page-49

Rosencrantz

Thanks for sharing.

68 cents/share is better than I expected, but it will mean an additional 44m shares issued and in all likelihood they will raise more funds via shares if and when they expand to 200k+ ounces.

Personally I do not believe that the money is mostly for expansion. There is no reason to order long lead items now when they do not have a definitive feasibility study with details of costs and justification for the Board to give it the go ahead.

I think they have given the usual figleaf window dressing to a cash shortfall situation that could occur in the near term. We will know for sure where the money was needed over time as they produce their accounts for the public.

I would like them to slow down/stop spending on expansion plans until they have the mill operating at full capacity for 3-6 months and have actually generated some surplus cash.

Having said that, I told BLK that they should do a capital raising rather than wait until things become dire, assuming this was not going to become habit forming.

loki