Yes, BLK's previous CRs were announced after a TH, but this CR...

Yes, BLK's previous CRs were announced after a TH, but this CR is a bit different.

They told the market on 1 November that they had an approved term sheet, with legal due diligence pending and paperwork 'well advanced'.

On the 24 November they worded the funding announcement in very similar terms, except on that occasion they gave the details of the funding deal (as it was at that moment in time) but it was still subject to legal due diligence, again with paperwork 'well advanced'.

Neither of those 2 announcements confirmed that it was a done deal.

Importantly, Pacific Road were to underwrite the rights issue, as was outlined in the 24 November announcement.

In the 29 November Prospectus, Barclay Wells appears (out of nowhere) and are now underwriting the rights issue, with Pac Road sub-underwriting it.

In other words, Barclay Wells should underwrite it, and Pac Rd will cover the shortfall if they can't raise the nominated amount. But BLK didn't have a binding agreement with Pac Rd yet for this to mean anything?

What changed?? This smells to me that Pac Road preferred to sit on the side lines a little bit longer. Why?

The rights issue required an extension because they couldn't get prospectuses delivered in a timely manner??? What the... ???

Question: If they can't print out some sheets of paper and place them in an envelope and put them in a post box, how are they running a 80,000 oz a year mining operation???


Now... what was a done deal on the 1 November and was still a done deal on the 24 November, now requires an 'update' on the 14 December.

I'm sorry to sound so cynical, but I've read enough BLK's announcements to know that this is not how these guys preface good news.

If it were good news, they would just announce the funding deal and let the price run.

Apart from being good news for the company, they would have given long suffering shareholders a little gift, by letting them take up their rights at 12c when the share price may have run to 20c or hopefully higher.

How nice would that have been???

Wouldn't it have gone a long way in restoring some confidence in the company and management???

But no... instead they have to wait yet again for 'an update on funding arrangements'

This is not how good news smells...