Very Good prediction RUR! ...... my quick calc follows below:
They currently have $900k cash ….. probably needed for salaries and directors fees.
From previous presentations, I think for Stage 1 they are anticipating 25-30 holes at about $450k-$500k per hole, and as ARE has 30% interest in Lake Torrens, their pro-rate contribution to the drilling will be:
Say 30% of (27 holes @ $475,000 per hole) = $3.84 million
With about 1.275 billion shares on issue, they will need to raise about 0.3c for each ARE share (valued at 2.3c today).
If they base a share offering at a price just less than the average price of an ARE share over the past month or so, say for argument’s sake 2.1c, then they will probably be after:
1.275 billion / 7 = 182 million shares @ 2.1c per share
In other words, if they go to their shareholders for the capital raising, they will need to offer them 1 share at 2.1c for every 7 shares they own.
