Yes 392649 - there will be no sales this quarter (no surprise to...

Yes 392649 - there will be no sales this quarter (no surprise to me, just look at past announcements, they have pushed this back over 1.5 years – holders promised production during 2012, then 2013, now qtr1 2014....still NOTHING, equity will be diluted AND they are getting tight, yet again on CASH...see annual report “During this interim period, the BNU mine activities are being appropriately maintained to a level that will MINIMISE expenditure and MAINTAIN cash reserves.” Re-worded, we are tight yet again on cash, so aren’t doing much for our pay packets, but hey, we can always blame the Mongolian govt for the delays…


Also, its quite dumbfounding to pay almost 30% of your equity for a tiny resource such as Springsure. After issuing 14% so far, with another $9m to be paid (probably in equity yet again – roughly 14%). WOW - what a rort, especially when coal is so cheap and people are giving COAL tenements away. So you, the trusting, patient shareholder, have paid, 30% of your Mongolian PLUS 30% of your other 20,000km of quality assets in Australia to pay for a tiny 200MT (versus a total indicated resource base of almost 9000MT ~ about 2%) of worthless resource (requires development, is part thermal that no one wants anymore).


Such an expensive purchase, the "chairmen" & Tsiakis alliance would be laughing all the way to the bank. They have swapped a useless resource for 30% equity in a much more valuable entity. Watch out for this, and how they end up paying the final tranche, because they have imbedded a dilution clause in the extraordinary meeting allowing them rights to dilute everyone even more:


“Resolution 4, if passed, will enable the Company to retain the flexibility to issue equity securities within the next 12 months up to the 15% threshold specified in the Listing Rules without the requirement to obtain prior Shareholder approval.”





This in effect will allow them to dilute your shares away willy nilly. 15% has compounding affects, doing this three times and you would have issued over 50% of the initial equity base, 5 times and the initial base has doubled.

Yes – I always warn on companies with concentrated ownership – so much for governance! It also keeps any suitors away, had this not been the case, then who knows, maybe GUF would have been acquired instead of Carabella!

Good luck to all holders!