I'd agree that this capital raising is of concern as whilst...

I'd agree that this capital raising is of concern as whilst it's only small, it's not a good start for a company that will do some larger ones in the near future to bring this project into reality. I know there is a (seemingly) accepted methodology for capital raisings as being a cocktail mix of existing shareholder entitlement and new corporate money. Whilst this might make sense when the sum to be raised is large and asking shareholders to provide the lot, in this case it would have made perfect sense. Arafura senior management and board might give some thought to the fact that what they'll need to bring this project on is strong shareholder loyalty and support. They won't get it if they pull another stunt like this raising, a (nearly) 1 for 7 entitlement raising only a modest sum and a CR to corporates at a big discount to the share price. This should have been a 1 for 3 entitlement to existing shareholders to raise most of the funds with any shortfall also offered to existing shareholders who wanted to contribute more. No dilution here was necessary and the price could have been 15 cents given where the share price has been over the past six months. Most of us in ARU know there will be large contributions required to get the Nolan's project to fruition and are ready for the task of providing further funds. The time for tapping the corporate market at big discounts as well as shareholders will be upon us when they want $250m, not $40m, so they'd better show existing shareholders more loyalty than was evident on this occasion.