Dear Luckydog,Here are your answers below. Why is the c/r priced...

Dear Luckydog,

Here are your answers below.

Why is the c/r priced at 8c?
We needed a deep discount to attract participation. The Small Resource Index is now at the same point as during the Global Financial Crisis. In this market where capital raising is very poor, we cannot afford to not raise our minimum. Also, since we have been suspended the resource market has further declined and we would probably close to 15c trading today

What is the position major share holders in relation to participating in this raising?
Most of the major funds have suffered in eth last two months – Blackrock had $4b in redemptions
In this light major shareholders have not yet committed

Why is the offer not underwritten?
Same reason, very poor capital markets – no one is prepared to underwrite

What attempts did the company make to raise the necessary funds in the last few months and why have they failed?
Lots of work however could not start until Jiangsu recovered from accident, Mt Cattlin resolved and Sal de Vida DFS completed
Once we started the Boston bombing occurred and the resource market fell in a heap

What happened to the battery project?
( ann. from september 2011: Galaxy completed a feasibility study for the Battery Project in Q4 2010. The study found that production of 350,000 e-bike batteries per annum would generate expected annual revenue of A$68 million and average pre-tax net cash of A$30 million per annum. The non geared, net present value (NPV) of the project at a discount rate of 10% was estimated at A$187 million, with a project capital cost of around A$134 million. The internal rate of return (IRR) would be around 29%).
We have streamlined the business to focus on getting to cash flow positive at Jiangsu. Battery project on hold.