Ann: Landmark Deal On Costs - Mining Back On, page-54

You need to look at the "Table of dilution" on page 8 of the announcement. This is equivalent to someone dumping up to 3.6 billion AGO shares onto the market at 5 cents or 1.8 billion at 10 cents. Its a bit like the ultimate short-sell position.

How can that be good for existing shareholders ? Current shareholders will be diluted down from 100% to 20% or 34%. The money raised is highly unlikely be used to pay down debt - its more likely to sit as a cash reserve backing the debt as a covenant.

AGO's prefered option would have been to restructure the debt, but it seems this option wasn't acceptable to lenders.