Ann: Capital Raising Presentation, page-2

Well ........ this is not good.

I make this almost a 200% dilution ( or is that almost 300% ? - whatever, it's massive ! ).

And it's not underwritten, so where is the confidence from the funds, and from the debt providers like the ultimate confidence tricksters Sprott ?

And the share purchase plan doesn't even open until January 11th.

This is one hell of a strange capital raising, because by January 11th the share price could be 34 cents, so will they still be trying to get a SPP away at 42 cents ? WTF ?

I've never seen anything like this before, with such extended timelines for raising capital, and no support from any funds to underwrite the project after the DFS - so what does that say ?

I have a small holding, and I won't be buying any more until after January 11th, so that I can see what the market perception of this company is at the time. Why haven't the company stated Sprott's intentions? I expect because Sprott are not intending to participate in the capital raising, otherwise the company would have sprouted it to the market hopefully.

I suppose it's because the gold project is in New Guinea, and because the locals recently complained about the quality of the housing relocation, and then the CEO/MD resigned as a result. So the whole perception of the stock has taken a hit, with good reason.

Then they bring in a new CEO/MD, and of course he has to have incentives, with stock options and performance shares etc ... etc ... - you all know the game by now, it's called the Small Cap Gravy Train (SCGT), where a new CEO small cap gold exploration MD makes in one (1) year what it takes the normal people ten (10) or more years to make, and yet what do they achieve, ten times the share price appreciations -  no way, because if lucky the price might get between 50% to 80% increase on production, but by that time they might have $100m to $200m in debt as well.

A lot of trust and confidence seems to have gone down the tube here recently, so thank god that the gold price has held up, because it might be the only thing that is also holding up the GPR price.

I bought a small tranche, a long while ago at 37 cents, and have just left it hanging there, but now I'm watching closely, because it's gone from 65c to 44c, and will probably head lower. Anyway, I've got until mid January to decide if I'll participate in the SPP, so no hurry, it's 3 weeks away, and who know what price it might be by then, but I'm expecting around 36 cents.




Gw