aim listing logic & questions re announcement, page-14

Wow, you guys are not giving nearly enough credit to bingflash for that fine post. It has certainly got me thinking and, to be frank, it concerns me that some of you just want to make a joke out of his thoughts.

Having CCC on the AIM will massively increase public awareness for the stock and hopefully give the ASX shares a good kick in the right direction. But while I am a real fan of the listing, I do have some concerns.

Capital management is the serious downfall with Continental Coal. They have happily issued little bits of paper here and there over the past few years, and all these shares have ended up in the hands of a fragmented share registry which at this point in time is acting as a massive dead weight on the share price. We just can't seem to get any upwards momentum in the share price.

For mine, the AIM listing will be run off a share placement to some institutions, but I hope that DT, JB, PL and co have learnt the lesson that these shares have to be issued to instos with long term intentions. If they are just out for a quick buck then forget it for all I care.

So what does this all mean? Well ideally we want to get the share price lifted up a bit before the shares are issued at any form of discount because, let's face it, it's not like instos are likely to buy up on market.

How much should be issued? Well we want liquidity in Britain or else there is no point listing there, so I would say around 300M-400M shares should do the trick. How much will that raise at 6cents per share? Anywhere from $18M to $25M. But at, say, 7cents per share, we are more looking at $30M to be raised.

For this reason, I believe management have a great incentive to get the share price moving in the right direction, so I would expect a barrage of news to hit the press leading up to the AIM listing. And I'm not talking about the 'flat' news about Botswana timelines and Vlakplaats information. I'm talking about De Witt feasibility studies, Penumbra updates, and hopefully the commencement of actual drilling in Botswana.

Hopefully, off the back of a good month or two for the share price, we will be back up towards 8-9 cents per share, and dilutionary effects on the share price brought on by the AIM listing will be significantly diminished.

As for where this $20M-$30M cash should go to from the listing, well $3M at Botswana this year, Kenya tenement purchases (if we get the nod), etc etc. These are all worthwhile purchases to be made, but they will need cash, and that is where our new found improved cash balance should come in handy. At the end of the day, it doesn't hurt to have some cash in hand if management find a good deal out there to be made.