The proposed loyalty option entitlement issue (1 option for...

The proposed loyalty option entitlement issue (1 option for every 3 shares you have) is an offer for share holders to buy options at $0.001 / share in the company which you can convert (exercisable at $0.05) to fully paid shares on or before 27th June 2021.

So if you take up the offer and the shares go to 10 cents in next 6 months then you can chose to pay the 5 cents and you will get 10 cent shares. This in turn will raise $157,294 for the company. If the shares are under $0.05 by 27th June 2021 you can forfeit the options without losing any further money.

As per Uttsy previous comment 'Cash' is becoming an issue. At the end of June they have $444,000 in cash with $320,000 spend forecast for this quarter. The loyalty program will raise approx $150,000 ($157,294 - expenses to issue options) leaving an estimated $281,292 by the end of September. Appears there is a good chance that they will need to have to raise capital by issuing more shares.

Let's hope the next results for Scotia East contain lots of cobalt to push up the share price as we really need a higher price share price for any capital raise.