At the last quarterly cash flow report they had $1.5m in the...

At the last quarterly cash flow report they had $1.5m in the bank before $.7m projected expenditure, of which $.4m was “admin”. In the last Annual Report, total directors’ remuneration was $1.5m, so that “admin” is substantially wages for the top dogs.

The last CR, in September 2015 (just over 6 months ago) was intended to raise up to $6.1m, of which $3m was underwritten. Only $1.2m was raised from shareholders. They then went into a suspension over some issue with the underwriters, who presumably realised they had been sold a pup. Eventually the underwriters coughed up, but I'd be surprised if they underwrite another issue.

The founders of GGG and GMEL must have looked like hot shots in 2007 when they acquired the Kvanefjeld project close to the height of the Rare earths and uranium bubbles. This was reflected in their share price (which briefly topped $2.12) and I’m guessing their salaries.

Sadly the bubbles have burst. Both rare earth and uranium prices have crashed and don’t look as if they are coming back soon. So now that the kitty has well and truly run dry, I’m not sure what the way forward is for this company.

If a large company like RIO owned the Kvanefjeld project, they could employ a junior clerk to tick all the boxes to keep the project alive while the political and economic circumstances improve. But to employ a whole corporate entity at $1.6m a year to monitor what amounts to a back burner project doesn't make much economic sense to me.

Unless the proposed CR will provide funding for at least 5 years, I don’t think I’ll participate, and I think I'll just write off what's left of my shares.