Capital return reduces the option exercise price to $0 so no...

Capital return reduces the option exercise price to $0 so no problem there. Heaps of info in today's announcement.

Re the cash backing. Once the deal is done i calculate 111.5m shares on issue; 80.5m + 19m options + 12m for the purchase of Torrington (i haven't counted the 12m milestone shares as they are down the track and based on a PFS and decision to mine). So 111.5m shares.

Cash?: we will know more when the 1/4'ly come out. Last 1/4 $9.345m less estimates of $600k spend for this 1/4 has it at $8,745,000 less the 5c capial return ($4.025m) less $150k or so cash as part of Torrington purchase less $120k or so borrowings...so cash approx approx $4.4m post acquisition. (not sure if property proceeds included in last 1/4 cash balance so may be bonus there).

$4.4m/111.5m shares = 3.8c

Trading at 7.7c. Take away the 5c is equivalent to 2.7c.

Cash gets spent..but effectively still below cash backing with a project to sink your teeth into thrown in for free.

I am sure CoalandGas may pick me up on something, though his fanatical rants have thus far proven incorrect and unfounded.