placement of 3mill shares

this announcement today for SMM on NZX:
(my question is - the placement was announced on 16th of august for the 3mill shares at 70cents, but who would pay 70cents when they could have bought at market since then a lot cheaper??)

SMM
01/09/2005
ALLOT

REL: 0835 HRS Summit Resources Limited

ALLOT: SMM: Allotment of shares - placement, exercise of unlisted options

3,000,000 ordinary fully paid were allotted today pursuant to placement
announced 16 August 2005.
481,159 ordinary fully paid shares were allotted today pursuant to exercise
of unlisted options.

Issued and quoted capital including the shares issued above is 187,930,021
ordinary fully paid shares (SMM).
End CA:00120083 For:SMM Type:ALLOT Time:2005-09-01:08:35:26