re: Ann: Placement and SPP for Flinders Hamer... watso not...

re: Ann: Placement and SPP for Flinders Hamer... watso not really interested in the fms thread - except that there was the issue of fms buying canegrass from mxr (a sister company).

watso. previously commented on the fms thread, that generally speaking, fms, for the what they paid, then they got a reasonable deal with canegrass (having said that - the whole issue of related party transactions stink - and what they picked up was an extreme longshot - but worth a punt anyway).

the capital raising is not a bad idea, at the current share price . at the end of the day, they are issueing another 16% extra shares, to double the cash resources

nothing was mentioned in the announcement, that the funds would be used to drill at canegrass - guess, that is on the back burner. mxr must have spent a motza on canegrass . at one stage mxr were spending $1m per month on their prospects, which would have included a motza at canegrass. indeed, fms, would have only paid a fraction of the costs that mxr had spent

the reality is, that mxr were issued with shares in fms, which really had a value of the issue price - ie 5.3c.

and what were the costs of placing the shares mmmm maybe 10%. why don't the companies say what the costs are (ok - maybe it is in the quarterly) - but this is where the brokers make their money