re: Ann: Extension to Closing Date for Rights... Other than more...

re: Ann: Extension to Closing Date for Rights... Other than more results from the same drilling at Allamber there is nothing the company has suggested as being due. Rabbit could be pulled from the hat somewhere but it's unlikely. Call them up and ask if you're unsure.

Quotes from an article in the AFR on rights issues...

“What you tend to find is the shares will trade down or under selling pressure. What you find is after the rights issue, you tend to find that the day it finishes, the next day the price recovers or the next week or so the share price recovers,” Mr Wilson said."

AND

“You participate in the rights issue if you still believe it is a good company. You don’t want to miss out on the upside,” Mr Wilson said.

You have to make a call based on your belief or not in the company.

I have had the same thoughts as you re the SP, but Tombu I believe made the best point - the company needs to raise cash to survive and if it doesn't then there is potential for all value to be wiped out and someone comes in and gets all the untapped value out of the tenements.

Another alternative if the rights issue is unsuccessful is that the company makes a very deep private placement like the mill or so it raised in July and/or has a fire sales of non-core assets that both dilutes existing holder further and puts more pressure on the SP.

As at July the company had about $3m or just under in cash based on my analysis and whether now or in the near future will need more cash to stay operational and keep the drilling programs going.

The last release was OK and I believe suggests more good news to come but wait and see. The market seems to have judged in as OK, not great, and certainly not a negative outcome. If there are any more results to come management has the option to extend the deadline again. They will be your best signal I think.

but DOYR and make a call. i have.