I've never heard of a rights issue at a 65% discount to the last...

I've never heard of a rights issue at a 65% discount to the last trading price. It hardly inspires confidence in the board. Now they are forecasting EBITDA of $20-$30M - a wide variance - but there will be a billion shares and then 750 million more if all of the options are excercised before expiry Dec 2014. So if that's 1.75 billion shares - if we use EBITDA as earnings (not 100% accurate) on $20M with a P/E of 10 that works out at 11.42c - at $30M same P/E 17.14c.

More to the point - how in the world are they going to build Sal de Vida - offer a zillion new new shares at 4c?

Too dilutive. Poorly managed. Need to really think if it's worth going all in at 8c.