the chm quarterly report ending 31 dec 07 describes what could...

the chm quarterly report ending 31 dec 07 describes what could be some serious financial problems for chm.

1. CHM has $1.365 million in the bank

2. for the half year chm spent $714,000 on legal fees;

3. they spent $240,000 on admin - probably director's fees

4. A huge $99,000 was spent on exploration and evaluation - what a joke.

5. They partially surrendered 1 block at meekatharra; probably a successful plaint against them.

I don't think they have enough assets to pay each of the repondent's legal costs when they lose the case. At the current spending rate they could run out of money in 12 months.

Perhaps the directors will offer their own assets as security for costs or even forego their directors fees.

Alternatively they could issue millions more shares and options in the hope that shareholders may take them up to pay for the case. But of course the dilution problem arises.

chm could be heading back where it came from.

The annual report and auditor's statement will be interesting to read later this year.