drilling...., page-17

Boise,

"...so i think they will use the full 15% and issue say 180 mill shares at 10 cents if not more."

On 28th Oct 2010 NDO issued 159M shares to SI's as a result of a CR.

Under ASX listing rule 7.1, a co. may within a 12mth period, and without SH approval, issue up to 15% of the issue existing 12mths prior to the proposed date of new issue (+ any other securities issued within that 12mth period that fall within the exception rule).
ASX Listing Rules Chapter 7

So the situation is...
On 30 Sept 2009 (approx 12mths prior to Oct 2010 CR), NDO had 1,050,814,774 shares on issue. (15% = 157,622,216)
+ On 9 June 2010 ML converted 15.247M
+ On 14 June 2010 ML converted 14.596M
+ On 7 Oct 2010 ML converted 26.892M

Therefore, total issue as at 27 Oct 2010 came in at 1,107,549,774 (15% = 166,132,466), and remember they issued 159M on 28 Oct 2010.

So, a full 15% capital raising without SH approval is out of the question until 28 Oct 2011.

Figures above do not include any issue for performance or incentive type option conversions within the period (if any made)...so at best, they still have 7,132,466, or at worst 1,377,784 shares they can issue under listing rule 7.1 before Oct 2011.
Even if they waited and G came in and the sp reached 65c, they could still only raise $4.636M at best on that residue.

If there is to be a raising it will have to be a SPP or RI to existing holders.
If this is the situation and they want the money before G hits TD, then the wheels to organise it may already be in motion (time needed).

On the other hand, the risk to postpone a CR til after the G result is known would pay handsomely if G is wet (whether a SPP before Oct, or a 15% placement after Oct).

As mentioned by p1K, a wild card could be another farm out.


And I thought you worked in the finance area.