cap raising on the cards - how, when, affect

Hi Guys,

With this thread I'm hoping to elicit some general, objective. rational discussion around the prospect of a CR.

The issues has been bandied around, talked up, talked down etc. etc. but it would be worthwhile if, considering the current financial position, we could give consideration about this prospect (likely, very likely, unlikely) of a CR and the reasons for such thoughts. - This to be to the benefit of HCrites to consider.

3 pertinent issues:

1 - If likely, what sort of amount do you feel needs to be raised in the minimum?

2 - How do you think the company will go about raising cap? Any particular method that will be best suited for current shareholders?

3 - What is the likely affect which a cap raise will have on shareholder value and the current SP? .

We have not received the quarterly report as yet - this I would think should be out soon? And it should show the cash position.

At end of June quarter there was 19M in the kitty - down 11M from the March quarter. This suggests that at the end of Sept quarter there may be as little as 8M. And already further depleted with Oct almost out.

Be mindful that in case of tenders, the tenderers would probably be doing site visits prior to lodging tenders (Say 8 groups? to be flown into Africa (For how long? and at what cost for each group?). This tells me that there may be an even higher spend this current quarter as opposed to the previous quarters which would suggest that the company is down to its last few mils - tenders not due till say Dec and then (hopefully) some serious negotiations which I believe will not be resolved until the new year (GC said at presentation he would be dissapointed if equity partner is not concluded before end of year but GC has a bad track record on these things and I think that is a dream. Silly season shutdown etc etc - If we're lucky, following site visits and serious expression of intent by some parties to tender, we might get an announcement to that effect mid-late Nov - but there will be no detail on the preferred party/ies and the financial arrangements. Investments $$ probably need to placed on the table by tenderers by mid Dec and only then will negotiastion commence. At this stage the kitty should be empty (unless you can think of some scenario how the koffers might be bumped in some way in the meantime).

My thoughts: CR is on the card: Question is How much, When, and what will the affect be.

Would be good if we can have some rational discussion on this without blasting each other's views. I'm sure we can all agree to dissagree.

Your thoughts guys.