big seller, page-12

If we don't get taken over by Sept/Oct this year, a capital raising is a certainty, everyone knows that. However, I have good reason to believe it will be a rights issue. If you're a believer in the company, you'd want to participate. To participate, you'd need to be a holder. So not convinced.

I can't see how it will hammer the SP any lower than it's current price. My feeling is that to raise capital around current prices would be silly of the Board. I would be looked instead to a cashed up major to fund the drilling program - they have shown a propensity to pay closer to fair value for cornerstone (strategic) investments than the greedy little shareholders would.

So I'd only do a rights issue at a price of 25c (if the SP permitted), or otherwise look for takeovers or try and make a placement to a major willing to pay significantly more than the current shareprice like Areva did with Polo's holding.

My feeling is still that we won't see out the year and will get taken over. Areva is the most sensible suitor. We know they like the area, we know they think we're cheap and we know they need more uranium to utilise their infrastructure and excess capacity.