Ann: Rights Issue Underwritten, page-6

I don't know whether to laugh or cry. If only I had the money this is what I would have done.... make this offer to SOC. It is the ultimate penalty for accepting funding from Bergen, losing control of the company ... if GTT get their full subscription it gives them about 25% of the company for a very, very, very low price.

It is at the heart of my complaint that management raised again @ 0.002 .... I sincerely wish they had waited and demonstrated greater faith in the company's assets. When I bought into SOC it was because of Mt Adrah, but, I completely underestimated Halls Peak .... by my assessment that is a company maker on its own. Come September/October the SP is/was going to be many multiples higher ... much better to have raised then, IMO. That said ... management opted for safety first ... OK.... they are not nerves of steel gamblers.

On the positive side....

The fact GTT is getting 2 seats means they are becoming cornerstone investors. Which means 300M shares are not going to hit the market for an immediate flip trade. It also probably means that SOC will now have access to more funding opportunities. The SP will only go up from here. GTT can have only one possible objective ... drive the SP up.

For us wee retail investors .... the value is unchanged. The fully diluted MC is about ~$2.5M @ 0.003 [ 800M shares]. Using the recent auditors assessment of assets @ $8.8M from the Annual report ... intrinsic value is almost 4 X's that ... so book value is 0.011 [fully diluted]. However, [in my opinion] true current market value is closer to $30M ... which gives me a working number of 0.037 for fair value of this stock [fully diluted]. I am expecting Halls Peak* to confirm itself as a major deposit and the MC is going to alter radically if the drilling finds its target this time around.

*On this account it is worth reading through this broker's report from RM Research [which I have put up in an earlier post]. On page 9 you will see the estimated CAPEX to develop Halls Peak is in the range of $500M to $1B ... so that alone tells you the potential being considered here.

http://www.rmresearch.com.au/wp-con...ch-Precious-Metal-Resources-ASX-PMR-Sep13.pdf

The things you see when you don't have any money ......