The company is seeking to raise additional cash through an issue...

The company is seeking to raise additional cash through an issue of shares to existing shareholders on a 1 for 4 held basis. So if you have say 100,000 shares held currently you will be able to purchase 25,000 additional shares through the issue at a price of 3 cents ($750). For each two additional shares you buy, they will also give you a free option (so you would also be given 12,500 options) which allow you to buy an additional share at 6 cents until September 2015 when they expire.

As the current market price for shares is 2.9 cents the options are out of the money and don't have much value, but if say in 6 months the shares were trading at 10 cents, they would allow you to buy a share currently trading at that price for 6 cents (a 40% discount to market). Of course the flip-side of this is that by the time the options are due to expire next year, the share may still be trading at 3 cents and they'd be worthless.

All depends on where you think the market for uranium is going I guess. If you believe that uranium stocks are due for an imminent revival then it would probably make sense to subscribe to the offer, however if you think that uranium is going nowhere for at least the next year, it's probably better to give it a miss. Up to you as to what you think will happen based on your research and what you want to do.