Buy your entitlement.. no dilution.. all OK

Sure this isn't an ideal situation - but I'm please that the company have give us the opportunity to avoid any dilution in our holdings. It might be at a bad price, but if you buy your entitlements.. you're no worse off.. you just own more shares, which means the share price doesn't need to go as high to hit your targets… as explained below:

if you don't buy the shares in your allotment.. then it will look something like this..

say for example the company has on issue 300 shares and you owned 10..

Your current holding would be 10/300 (0.033%).. after they issue 1 share for every three, if you didn't buy anymore, your holding would be 10/400 (0.025%).

However, if you took 1 share for every 3 then you would have 13.33/400 (assuming you could buy .33 of a share for this example).. then you would still hold 0.033% of the shares in the company.

Therefore your shareholding isn't diluted.. but at a small cost of $0.01 per share purchased.

and because you now own more shares.. you don't need the share price to go to $0.30 anymore.. a price of $0.225 would give you the same sale price, although at a slightly higher cost… so maybe you'd need $0.23 to generate the same profit.

Everyone chill - this doesn't change what's in the mountain.. we just need to get that damn certificate, get Sanchez drilling some holes and we'll be looking good again.