Fairport,Yes, that 3B is for the issue of new shares at 40 cents...

Fairport,

Yes, that 3B is for the issue of new shares at 40 cents to the instos.

So, given that the issue price is currently the same at the share price, the dilution is equally matched by the incoming cash! And there is an SPP also running.

I agree that it is odd that HGO paid two dividends late in 2009, only to return to the market in the new year for more capital. Speaking for myself, I certainly wasn't expecting it, given how much cash HGO have. In fact, what I was expecting was MORE incoming cash from a JV partner, to help fund the mine development.

However, HGO went the other way. They are going it alone on Kanmantoo, turning down the reportedly good offers. You can of course read this two ways:

(1) - they are bullish about metals, can afford to fund it themselves out of cash, cap raising and modest finance. So when you can go it alone, why not? OR,

(2) They did not receive an offer that was good enough on Kanmantoo.

The other things I have been pondering is what else can we infer from going it alone on Kanmantoo?

- Does it imply the are confident in receiving the extra cash from the ESG top-up clause?

- And if they are spending $100m on developing Kanmantoo, and yet their Indonesian prospects are considered their MAIN avenue for growth, what does that say about the coming results from Indonesia? Do they really think Sumba and West Papua are likely to be worth MORE than Kanmantoo?

Fairport, I certainly don't have all the answers, (and I still have a lot of questions). But with HGO having such a strong cash backing, moving from explorer/developer to producer, multiple projects about to be drilled and other sources of growth (ESG takeover), I am sticking around to find out some of the answers.

Good luck.

Y