an underwater mak part 1, page-19

IF Sandpiper proves economic I doubt there will be any difficulty raising capital. It will mean dilution but the money will be found as it usually can be for quality assets. The level of dilution will be determined by whatever mix of debt or equity funds the project and this also will be determined by the quality of the project.

As cerhob has pointed out UCL has raised a lot of money in the past by issuing shares, the normal lot of a junior. Over the last 7-8 years this has been to explore and prove up the Mehdiabad zinc mine in Iran, the world's largest undeveloped zinc mine and a major achievement for a minor company. As cerhob also pointed out capital still has to be raised to administer the company while Mehdiabad has been frozen in a dispute with the Iranian govt partner for the last 18 months through no fault of UCL. This ongoing need to raise capitaly is a definite weakness but also highlights a strength which is the major shareholders of the company.

39.8% of UCL is held by two companies - Lundin Mining, aggressive Swiss/Canadian zinc miner with a major growth strategy, and RAB Capital, London based venture capital/micro investment company. (Only 20% of the company is outside the top 20). These two companies are with UCL for one reason only and that is the Mehdiabad project, they remain with the company for that reason since it is such a rich prize IF it can all be resolved. (Which I and evidently they believe will occur eventually).

In the meantime it means they must participate in any necessary capital raisings to maintain their 19.9% shareholdings - essentially 40% of any placement needed is covered by these two as long as they want to maintain their share of UCL. This means that any underwriting stockbroker already likely only needs to place 60% of any necessary raising - here is where the quality of the asset will hold sway. If it's good enough then the money will come.

The initial JORC is going to be incredibly important in the restoration of UCL.