A decent cap raise in the circumstances. Strong positive for me...

A decent cap raise in the circumstances.

Strong positive for me - $270k worth of commitment from directors. I presume that may be issued against fees foregone? It's still valuable if so.

Postive - given the simplicity of the exploration task it should drive a lot of work in Tanzania. Also, again given the simplicity of the exploration task, I would expect them to get a pretty clear idea of what they are working with fairly quickly.

Negatives. I don't want to be too picky but I really dislike cap raisings with attached options. Until exercised or expired options must be expensed by the market at full value which is necessarily a depressing factor in the trading price.

The other negative is of course further dilution - approx 219 million shares or very roughly 20%. The reality is that circumstances demand it so it's a comment not a complaint on my behalf.

The upside for both these negative points is that the combined Jacana/STA story could be very powerful IF they demonstrate a quality resource base. This story, if successful in exploration, will see the whole worth more than the sum of the parts due to appeal to a major.