Well I have been spending some of the afternoon trying to think...

Well I have been spending some of the afternoon trying to think this one through. There are a couple of things that are standing out for me at the moment, the first is the timing of the announcement for the CR. I find it somewhat unusual that the stock didn’t even get a chance to trade after the trading halt before the capital raise was announced - the only real reason I can think of as to why this would be the case is if the CR was linked to the trading halt. Is it possible that management didn’t see the CR coming but rather it was some kind of condition to the MOU? This might explain why the stock wasn’t given any opportunity to run before the CR was announced. It will be interesting to see if any of the shares as part of the CR go to our new partner.

Secondly, why 6m. It is a smaller amount than I was expecting, I was thinking closer to 10m - 6m will likely only last 2-3 quarters, so what’s the end game with an amount of that size. Perhaps it is a token raise to help our new partner, with a few shares thrown in to appease current holders? It is possible that management is trying to keep dilution to a minimum while they try and get a finance package sorted - perhaps they think finance is within the next few quarters?

I guess we had to raise at some point, and there is never a great time to do it. If the above is not true, and we actually need the cash now, i am hoping that they have decided to kill the momentum now on the MOU, so that there is nothing to stop the run when the resource upgrade and DFS are announced, and then maybe we will finally see some good gains.

I will not understand the size of the discount 4.2c but perhaps with the constant new highs that we have been seeing of late, the price wont drop this low, therefore making it a good buy for holders. I know that unfortunately history does not support this, but I live in hope. 4.2c will mean i am back under water....again.

I am frustrated with how this has played out, but I am going to withhold my criticism of management until I see the detail. I know there are some mixed emotions on here, but i generally feel that management haven’t set out previously to deliberately screw shareholders - i think there is definitely some things they could have done better though for sure and I have not been backward about telling them about these things. I base this on the LRC investment which avoided dilution, the placements to Ruifu and Yahua which helped to avoid further dilution, and a few raises ago where the placement was limited to only those holders on the register as of a few weeks before the raise was announced. Only time will tell whether this is another raise in the same vein, and I am hoping that this raise will also also be limited to only those on the register (for the retail component anyway). I am not yet decided if I am going to opt in or not, I will ponder this over the weekend.