Ann: $58m Funding to Completion of Feasibility St, page-15

re: Ann: $58m Funding to Completion of Feasib... It's good for one shareholder, but it's short sighted and not a good deal for the rest. The fact is Conglin Yue doesn't have the cash today, and yet he wants to lock up a bargain today before the market picks up. He is stuck with the 20% takeover rule which he has been avoiding. If you look you will see that any capital injection from this secured 16% deal is delayed until first payment (Oct 2013) and then its all done in 12 mth instalments.

Meaning "Sure We Have A Deal" but will pay you latter when the market improves and the new drilling/assay's have started flowing in May/June. Remember he gets 36% production with 16% at companies cost price (thrown in). Even at first look the deal looks to me like desperation and panic rather than long term shareholders welfare. The board would have to do a very big sell job to justify giving away the farm after such a short development period.

This is especially so when you consider such a small amount of ground has been covered. Considering the amount of potentially good ground NTU has, its far too early to be taking the first offer. Undoubtedly the next trance of drilling will increase NTU's maiden JORC. As money is freed with the world economy bouncing off bottom, capital raising will be easier latter this year. What needs to happen is that other offtake partners are needed and that includes LYC who will need to increase their stake to block this bargain hunt.

As we know gold has been very strong and pricing for years shows no signs of slowdown. The region has several 5 million oz reserves and the likelihood of many still to be found. So on the gold rights sale, there needs to be a royalty added per oz on top of the payments, which should not have payment delayed until sept. That $2m is very much needed for the start of 2013 drilling.

Capital raise from 18.8m shares to sophisticated investors is fine as Conglin Yue will not trigger the 20%. This income unlike the other two is instant and heads straight into our war chest. Capital raise via rights issue same deal and is in the best interests of all holders. In fact imo doubling those would be far better than the short term lets give away 16% of the farm and you can pay us when we have a bigger reserve proven.