beware, page-3

You say a takeover at a ridiculously low price. It seems more likely that the Cameroon government would take the tenements off SDL and give them to someone else who can develop them. The government's principal concern is to earn revenue from mining. If SDL can't do that and someone comes along and says they will, SDL's role in it all becomes a bit redundant.

I doubt Cameroon are too concerned about the perpetuity of security of tenure especially when SDL have had the ground through an entire mining boom cycle and not got it off the ground. The capital raising money will go to:

1) Paying salaries
2) Keeping the tenements in good standing paying official and unofficial fees to 20 layers of officialdom
3) Limited study work - engineering, environmental, exploration

If the money lasts until the iron ore market improves and they get project funding they'll survive. But it seems to me shareholders need to consider it the same as putting air into a leaky boat, and all they're doing is stopping it from sinking.

There are a lot of companies issuing large numbers of shares at very low prices, its a bit like printing fake money. It reminds me of the staggering inflation Germany faced at the end of the war. Wheelbarrows of 1 million mark notes to buy a loaf of bread.