This appears to me to be a recommendation of BurnVoir. I did not...

This appears to me to be a recommendation of BurnVoir. I did not see it coming, but I can see some merit.

The price of gold and the RXL share price has moved up materially. It would have been inconceivable a couple of months ago that RXL could raise this $amount with sub 20% shareholder dilution. It does have an element of conservatism attached to it (by the way the percentage of dilution is the new shares allocated / total new shares on issue)

The funds appear to be allocated to a number of activities that you could label as pre-production capex, so in effect the expenditure is being brought forward to show project execution momentum. The message is emphatically that this is a gold mine being built rather than it being a “concept”.

If the upcoming spending can create a mine plan with a sub 12 month payback period, presumably the next capital raising will be significantly reduced as non capital forms of project finance become easier to justify due to the strong underlying fundamental cash flows.

Shoring up early cash flow to bring forward debt repayment will enhance the business case with financiers handsomely.

There have been other large capital raisings that have been followed with good share price appreciation thereafter. One company that I have kept an eye on is Astral Resources, which is a good example.

In summary I think the company has jumped at the opportunity to shore up its balance sheet due to recent share price strength.