I think Brett gave an excellent explanation Kelder:"My view is...

I think Brett gave an excellent explanation Kelder:

"My view is that Thundelarra is a resources Company, not an investment fund and it is not our role to hold shares in other companies for ever."

Must take into account that Thundelarra entered into a
Sale Agreement with United Kimberley Diamonds (now UMC)
whereby UKD acquired 95% interest in the Phillips Range
Diamond Joint Venture from Thundelarra.

The consideration was for:

a) 20,000,000 ordinary fully paid shares in the capital of United Kimberley Diamonds; and

b) 5,000,000 options to acquire the same number of fully
paid ordinary shares in the capital of UKD with an
exercise price of 20 cents each and expiring on 31 July 2008.

The balance of UKD options, acquired by THX, was from a Non-Renounceable Rights Issue, where existing UKD shareholders were offered 1 new option for every 3 shares held and at a bargain price of 2 cents each.

THX sold all of its 12.1m options late last year for a net value of $9.4m. Not a bad $140k investment, don't you think?

Btw, on a side note, almost 8m options were underwritten.....lol

Getting back to your original query Kelder, if THX sold its UMC heads @ $3 each, they would have netted $70m for a total outlay of < $200k + Phillips Range which has since been dumped by UMC!!!