Ann: Ngualla Project Update , page-36

" PEK is Okay for cash now"- Denial.

Depends on your definition of Okay and Now.

We know PEK had approx 6.5million in bank as of Feb 29 or so.

However they have a Drilling Budget of $5 million for this year and have given no advice on costs for Mettalurgy or Scoping Studies and the North Zone Jorcing of the other materials outlined today for this year.
Also Presentation expenses in New York and London beyond the issue of 75 cent Options to Organisers of these.
Office rent has increased as well as Director's Fees for Beasley are additional.

We will be advised at the end of this month in a Qtrly to March 31st of the current Cash Position but I calculate that another Capital Raising of up to maybe $10 million could be required for this years Budget for those studies etc. let alone 'unleashing' a London PR firm.

So we have our "core group" of Sophisticated Investors from Shaws etc now on the outer with Management and us retailers.We have a current Top 20 register top heavy with
with "unfinancial" to contribute pro rata to a Shareholder Raising by Rights Issue.

We seem to have only the Avenue for a Shareholder Raising based on a Fixed Sum say $15grand max raising from all.

A SPP that allows holders of even only $500 worth to participate to the same level as holders of a half a million$$ worth ie both can buy 15 grand$$.

Anyhow these can be even worse Raisings than from bleeding Sophisto Investors!!
In that the shareprice gets swamped down to Offer Price and then get's capped and even downtrended as all in sundry plays the Trading Game.

I'm only talking about a Capital Raising for the next 12/18months Budget Requirements.It's obviously apparent that it has to be done.

Question is How will Management swing it?
This will be illustrative of their "expertise" especially if they're contemplating AIM listing to raise the Big Kahuna Capital for 2015ish Production.

cheers

ps I vote some "Reward" option deal.
maybe not listed/renounceable.
maybe on a short 12/18mth time frame
but issued on a pro rata to Holding basis.