re: Ann: Quarterly Activities Report and Appe... strider, the...

re: Ann: Quarterly Activities Report and Appe... strider, the $22.5m drilling loan with CIFI is a separate matter to the $30m CIFI preference share raising. Currently, CIFI (an offshoot of the World Bank) is the lead arranger in a capital raising which aims to raise $30m for the Copahue Project. As I understand it, the preference shares will be $US1.00 and can be converted, at any time, to ordinary shares on a 10 for 1 basis (implying a valuation of approximately 10c per share). According to previous announcements, the preference shareholders will own a subsidiary project company (called Copahue Geothermal SA, I think) and they will have first dibs on any dividends arising from the project. Right now, it looks as though this CIFI raising is a do-or-die deal for us. Torey has done a fantastic job to secure 90% of the project funding through the Inter-American Development Bank, CIFI and AGS Capital Group, but this last 10% is proving to be a real challenge. I think that the IDB must have certain conditions which require a percentage of equity capital in order to release the senior debt. That said, I'm sure that the bank has a lot of other conditions that the market has not been apprised of.

ryanm, welcome to hotcopper. I'm sure you'll figure out the way the market works. It's a bidding system. Buyers and Sellers line up their bids at prices they are happy to buy or sell at, then they wait for someone to move. It's a classic mexican stand-off. As for your use of the term "investment", I would not use that word to describe a share purchase of any company that is not turning a profit. Buying EHR shares is speculation, not investment. Some of us, such as myself, have lost a lot of value in our portfolios by speculating on EHR. In my case, I am still holding shares that I paid 6.7c for ... ouch! As for CIFI, it's a really long Spanish name for a South American financial institution that is an offshoot of the World Bank. Good luck with your first forays into the share market. I sincerely hope you make a lot of money off EHR.