I think (IMO) the most important factor is that this facility that has just been established is accessible only as required. Basically, the "big boys" now don't have as much power to bully URL into giving (or selling) up Roseby in the next 3 years becasue of this 20mil they can draw on at any time.
In the long run I can see this move generating more $ for the medium to long term shareholders becasue it gives URL everything it needs to bide it's time.
It's unfortunate that things haven't moved along more quickly but call me crazy but I think I'm actually happy we didn't get financing around the same time as CUO. I'd hate to end up in the same position as they find themselves in now and I really feel for every one of their share holders.
At least now I for one can feel confident that when (and I do mean when) financing is sorted it won't be on any terms that would jepordise the company or the financiers investment.
As for the interested parties as mentioned in PI's BRR interview, he specifically mentioned several Aussie commercial banks (most likely CBA and NAB renewing their interest), Bigger miners and hedge funds all showing an interest....great but no more talk until something concrete is in place!!!
One thing that does raise an eyebrow with me is this.....after the Cap raising a few months ago the majority of the shares actually went to the underwriters. Guess who the underwriters were???
SOVEREIGN GOLD NL EXTRA RUN INVESTMENTS LIMITED TULLA GROUP PTY LTD COLVIC PTY LTD
Yesterdays announcement stated that "The balance of the Issue was taken up by the Underwriters to the issue for a total of 112,541,429 Ordinary shares at 1 cent for $1,125,414."
This was after only 59,469,771 shares were issued to existing holders. What i REALLY want to know is what amounts were distributes to which companys because last time I checked (17th March 09) Tulla Group and Sovereign Gold were the top 2 substantial holders in URL.
Where are the change in holding notices?
If we have new substantial holders why haven't we been informed?
I would not want to be PI tomorrow (if he answers his phone that is)!!!!
URL Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
