As the cash is being raised via a rights issue, the 8c URAOA options will most likely have a slightly altered exercise price. There is a complicated formula that I cannot recall of the top of my head, but when the forms are sent out to us, current option holders should be able to reference this formula to see what the URAOA exercise price will be adjusted to. If it isn't on the RI forms, it should be on the initial option conversion forms that you will have received when you bought your options. Why is this done? Well it takes away the disadvantage that options holders have in a situation like this, because the stock is diluted, but they cannot partake in the rights issue (at least on the basis of the options that they hold).
Secondly, with results due within the next 3 or so weeks, it would be fair to assume that there will not be enough time to complete the rights issue before then, so we as shareholders should be able to have a "free-look in" (for want of better words) at what the Mn results are, before we put more money into the stock.
Also, to those who are doubting the validity of this manganese operation, have a think about what is already in place in Zambia.
* 2 of the 4 manganese tenements already have mining permits * sales contract agreements are taking place as we speak * the manganese is readily saleable (i.e. most likely DSO) * infrastructure is already in place, 8km away, at the railway line * mine planning is taking place, to ensure that production begins in Q3 * large scale exploration licenses are held to allow URA to target further Mn opportunities.
With the above 6 critical points, it is very hard to see how this project will be anything but a success. In fact, given that all the other nearby tenements have manganese that is readily saleable, I dare say that URA is a shoo in to reach great heights with this.
URA Price at posting:
3.5¢ Sentiment: None Disclosure: Held
