I think to be fair to the directors, my theory would be that...

I think to be fair to the directors, my theory would be that they may have been looking at conducting a placement in the last month. Market conditions obviously turned fairly sour for that.

The notice of general meeting came out in late April but probably prepared/designed well before that. ie, well before market conditions interfered.

The directors gave themselves the option of participating in the overall placement so unless they conducted the full placement, unlikely they would be able to just issue those director shares alone. I see them wanting to take a stake as a good thing. Much prefer them than sophs.

There is no certainty that the placement will go ahead. ODN went through the same situation late last year in their AGM to issue 200m shares. They didnt go through with it but they didnt really need to. I see it as giving themselves the option by obtaining shareholder agreement in advance.

If it does go ahead, in my opinion it would be tied to an acquisition or new project. The hope, as stated here before is for a new project somewhere outside the US, with a preference for coal. They have alluded to that in their prior statements. They really dont need the placement funds for short term working capital, they have enough for that.

Now if only they could have a look at Mongolia...CEO did it..

Now sitting on a market cap of $2m or less...