Ann: Placement, DFS Results and Resources upgrade, page-4

re: Ann: Placement, DFS Results and Resources... Curious, i posted earlier in the day but it hasn't showed up.

A few comments from my perspective:
- placement is very significant news. Subject to shareholder approval and some due diligence however if it goes ahead it achieves multiple aims. Firstly it should kill MAKs takeover attempt stone dead. There will be nearly 50% of the company in two holders unavailable to them. They may try and fight it somehow but sensibly they should just give up - can't see how they can succeed now unless they make a cash offer they can't afford.
Secondly it confirms both the viability of the dfs and also UCLs previous announcements that there is interest in this project

- the level of the capex is a big increase on the scoping study. I'm a bit disappointed by that as it means potentially a higher level of dilution. The improved economics will lessen the impact however we definitely want to see the bulk of the raising done at a higher level than at present. Presumably it can't happen for at least a few months as i don't imagine funders will commit before they get the environmental approval sorted and secure the land for the plant etc. that gives some time for the company to try and drive the market higher - if they are capable. The MAK offer doesn't offer any protection, if you aren't interested in Wonarah, as it locks in a major dilution to Sandpiper exposure before a dollar is raised.

- the two companies have released quite different announcements where usually it is agreed text. My unsubstantiated reading of this is that there is visible conflict now due to the takeover - was it dapper who called it? I think the content is revealing. UCLs is both more optimistic and more detailed and they have gone to the trouble to do financial/economic calcs and projections. I suspect MAK are trying to control things to support their takeover attempt however I am forming the opinion that they are miles behind UCL in respect of financing. Not surprising really given the different level of effort over the last 12 mths.

- cap raising. 2 million. I guess it will be at 30c as per the MB Holdings placement price. The need has been exacerbated by the takeover draining our cash but something would have been needed in the next few months anyway.