Ann: Becoming a substantial holder, page-38

i look at the time line
*everyone knew that large diamonds where expected at blk8 before the last placment
*the second last sale was for about 1 million (sold smaller diamonds)
(good reason to give for placment)
*lucapa secures long term investors but does not secure the cash at that time for earth moving equipment
(who pays for shares before they are even entitled to them )
* next 2 weeks 20+ diamond show up and a lot of "market excitement "
**earth moveing equipment purchased already and on site and some still coming
so that deal must have been done a long time ago
**issue placement shares 14/10

ohh and 5 million in sales
enough to cover costs and ramp up a bit more
i dont think the placement was needed or in the interests of then current shareholders

what would the share price be without the last placement??? 60/70c
and is it worth it in the long run ?? not for a digger and a tip truck
they can buy a digger and tip truck with the 5 million sale if they want
they could put it on hire purchase like the last time
and still have operational cash

thats not what happened
what happened is some HNWI secured a deal to buy shares/options but not pay/be issued shares until after the last month of market excitement

and the same HNWI are now in a position to dilute the shareholder base with the first right of refusal
i dont know what price the next deal will be at but there will be more dilution happening

i personnally saw no reason to fast track the latest earthmoving equipment
when strong cash flow was so close ( 6 million ) in a month
im sure LOM could have tip toed along very nicley with 3 million cash flow a month