Ann: Trading Halt-VML.AX, page-16

Not going out on a limb here, as I have been trying to divine just what this announcement means.

As I understand it, the current drill programme is not spaced close enough to prove up a viable ore body at Kollo. At best any results can only be a cause for optimism, pointing to a mine being likely. At best.

So, if the Board believes they are on to something, they will know, with only a moments thought, that they will need more drilling to prove up a viable resource or ore reserve. The reserve is the ore that can be extracted from the design mine, if ever it is built. This is what goes into the bankable feasibility study, which opens up the cash flow for construction of a mine etc.

So, if they are on to something, they will be keen to get more cash and order up the extra drilling needed to prove up a mine. That in turn makes the project more marketable, and at a higher price, which may be what the Board is really after. The Directors did take up their entitlement in the last cash raising and two of them took up additional shares.

Yes, shareholders are diluted if they sit tight and take no part in a cash raising, but can always contribute and maintain their percentage ownership.

But, capital raising does not always involve issue of new shares, does it?