Ann: Trading Halt, page-45

Ah Dr Drill, I had forgotten about him, well turns out he was right this time....as reflected in my post at the time I certainly didn't see a credit raise coming.

Does that mean I do or should see it as a negative...?

No IMO not at all.

To me worst case scenario is, as has been speculated by others, we are just locking in a substantial amount of cash in what is still a Covid stricken, debt laden world and uncertain market...well even that would get a tick from me, that is sound fiscal thinking.

Though personally I am a bigger risk taker (thankfully I don't run ASX listed companies) I would have chanced continued even expanded drilling even if it ran down cash reserves in the likelihood of a discovery and ability to raise later at a higher price.

(We don't know the terms of the deal yet, to whom and how much, why etc so its probably a bit early to speculate about a lot of this with any accuracy anyway.) But....

To me it seems more likely in light of what is going on discovery wise in the Julimar zone, comparing our data with that of CHN (which will have been done in house) and looking at their trend northward, what CPN is unearthing and reviewing what we have discovered to date that Sovereign Hill warrants an extensive (and expensive) deep drill campaign including Diamond drilling.

I think the company believe we are on the hook at Sovereign Hill and Nangas Rd and perhaps another of the East Coast targets and all this starts to sound expensive ...hence the need for money.

We don't, we can't be told everything, in some cases we can only speculate what the company is thinking from its actions. Reading the smoke signals.

Ok back to the two possible reasons for raising cash, now, that I have mentioned, ok Yes it is an uncertain world but at least at the moment we have strongly rising metal prices. The market, our market is in our favor, in sailing terms we have a backwind.

So I think the later scenario is more in play, that there is a degree of certainty that we have significant targets that will likely bear valuable fruit given extensive drilling...that we are on the cusp of significant discoveries...and so the need to raise cash now earlier than expected.

But I am just speculating and we will all know more when more details come to light...