Ann: RLC underwritten rights issue at 2.5 cents to raise $3.5m, page-35

Not gonna lie - didn't see an almost 60% discount to VWAP and a 55% discount to last traded price capital raising.

Going to be a painful bit of dilution here for current holders. Not much left to do except for top up.

The massively discounted 2.5c raise does work out strangly well for the vendors and Adrian Griffin, however...

AG will end up with about 32.78mil shares assuming full take-up of entitlement (8.25% of post raise SOI) while Needmore Investments (Geof Balfe) will control 8% of RLC.

Geof Fethers will control between 6.77% and 12.18% depending on entitlement offer participation. Jonathan Hamer will have between 3% and 5.5% depending on offer participation.

I do hope that the Patterson people don't get a drop of RLC as they will be more than likely to dump as soon as we see any positive movement. Best to keep the shares within the current registry and hopefully in the hands of long-term holders.

On the positive, we now have enough money (guaranteed by underwriter) to drill 2 holes at Columbus Marsh. After the deep 1000m drill/test at $2mil and we should still have enough money left over for the other shallower one and working capital. Maybe that's why GF chose $3.5mil?

After that, we should command a much higher share price and therefore less dilution come time to raise for the other drill costs.