The term "beggars cant be choosers" comes to mind when looking...

The term "beggars cant be choosers" comes to mind when looking at this as a shareholder.

The dilution for existing shareholders is going to be significant with many likely to be sitting on averages of mid teems or higher given the sudden fall in the sharprice when the BOD pulled out of Mt Morgan - I'm on an average of 7.45c which is still going to hurt - with only a small allocation to existing shareholders there is not much opportunity to offset the dilution even should they wish to participate in the capital raising.

There are also a few "hairs" on the deal, a few being:

Leases - The Company is aware of certain historical non-compliances by Cockatoo Iron with reporting conditions and
rehabilitation obligations in respect of M04/235. The Company is investigating these non-compliances to
determine the level of risk (if any) they present to the Company's proposed operations.

Grant Risk - L04/104 and E04/2528 are applications for mining tenements that have not yet been granted. Even if these
applications are granted, there is a risk that the resulting tenements will be granted over a lesser area than
applied for, or granted subject to non-standard conditions.

Undocumented Loan - $12,237,237 from World System Capital Investment Limited (World System). though there are indications it is not repayable
Not a lot of people who will lend $12.3 m in an apparent undocumented loan I wonder why these guys lent that sort of money and did not document it. did?

Native Title - not resolved

There are of course other considerations in addition to the few listed above - market price of iron ore being sustained in an uncertain economic environment in the near future, competition, cost of development, Infrastructure (it is on an island not mainland mines with access to existing rail and port infrastructure)

Don't get me wrong, a deal (dare I say any deal) is better than no deal and CRB was never going to get a top notch project with the cash it had available . At least the BOD have come up with something unlike the previous "Mr Morgan" management / directors who jumped ship.