Ronraine,
Your suggestion seems a pretty logical thing to do for a company supposedly committed to growing shareholder wealth as per its own advertised mission statement.
Alternatively, the company could have announced something more representative of its previous announcements in relation to its "cornerstone shareholder" and the supposed benefits of entering into the subscription agreement with NMDC.... such as...
Utilising the significant financial resources of NMDC the Citibank line of credit has been increased to $50M (which would be a mere 25% of the previously announced line of credit that was to be implemented by Sharon and Casper the Ghost) to enable the completion of a Pre Feasibilty Study on Mt Bevan.
Shareholders could then be given an opportunity to subscribe for further equity once value had actually been added by management and the "cornerstone" shareholder.
Instead what is proposed, is a crushingly dilutive, and valueless, rights issue at basically record lows.
IMO anybody in this stock at anything over 4 cents will quite possibly be never be made whole again. Exceptionally sad given the litany of false hope announcements out of this mob for the past 3 years IMO.
Ironically, with a REAL financially supportive cornerstone shareholder the company's exceptionally unlikely Port Access position could be reasonably rapidly solved.
It appears that Cliffs Natural Resources Australian assets (currently mining and WITH Port Access) possibly look destined to go on the market with activist hedge fund Casablanca looking to have made headway in controlling the Cliffs Board in a proxy fight overnight. (the fund has a stated intention to begin a program of selling off the Non US assets).
http://www.cliffsnaturalresources.com/EN/Pages/default.aspx
Admin expenses up another $260k for next quarter according to todays Quartlerly. WOEFUL.
GLTA (we will need it)
Moi.
(20min delay)