$2.4m cash at the end of Q1, enough for 1.25 quarters and to...

$2.4m cash at the end of Q1, enough for 1.25 quarters and to sail Rox right through to the PFS in June and beyond.

The share price is low (gold stocks have not caught up to the price of gold yet) and Rox don’t need money before the PFS.

So why have a diluting CR now that erodes the value of our shares? Why not do it after the PFS when the share price should be much higher? That is the argument Rob Ryan made in his last presentation.

Two possibilities:

! The PFS will be disappointing so raise cash now.

2 The PFS will be robust so grab more shares before the price explodes after the PFS.

If 1 mainly retailers (outsiders) will buy more shares but will we? The share price could fall below the CR price.

The insiders such as management know the outcomes of the PFS studies to date and we do not so the risk is on us.

I favour 1. How can an MRE of 1.1m oz Au @ 6.1g/t good metallurgy from the Scoping Study and a soaring price of gold (AU 1,000 higher than the Scoping Study assumed gold price) not produce a stunning PFS?

Ergo the upcoming CR is not primarily about raising cash.

It is designed to offer major holders including Hawke’s Point and Venus and management with cheap shares before the PFS. The CR also strengthens Rox against a low ball TO offer after the PFS. We get a bite of the pie too to make it fair which of course it isn’t because we are in the dark about the PFS studies.

Rox would not have launched this CR without prior agreement with Hawke’s Point, Venus, instos and management to take up the new offer. The money Rox doesn’t need is already in the bag and Rox don’t really need retailer participation. If we don’t take up the offer a shortfall from the rights issue will be placed with instos. Retail acceptance of the offer or rejection by us are both wins for Rox.

Rox was confident they would sell non-core assets to raise cash before the PFS. Did they get exciting metallurgy results showing they can produce bullion cheaply and held off a sale to justify the CR?

Ignoring the gymnastic contradictions about the need for more money, this Quarterly points to an outstanding PFS in June. The insiders know it and are loading up.