"I guess the focus on these pages has been on the Bergen deal...

"I guess the focus on these pages has been on the Bergen deal whilst the rights issue is actually the potentially more significant component for the company and individual shareholders. If they were to get a full take-up, I guess it would lend more credibility to the unlocking of value claim."

It sounds like the major holder is not fully committed to the rights issue yet.

"Christopher William Giles on behalf of Trindal Pty Ltd (a company associated with the Managing Director) and its associates (Trindal) have indicated that whilst they are currently uncertain as to how much of their Entitlement they intend to take up, they have confirmed they will not take up any New Shares to the extent that it increases their shareholding above the present percentage holding as of the date of the Prospectus. The Company will also not issue Trindal any New Shares and free attaching New Options arising from any Shortfall."

The danger comes if the share price falls below the offer price which recently happened to another company operating in South Australia, WPG. Eventually they were forced to withdraw the offer. This offer is underwritten to the tune of $1 million which is some comfort but the underwriter has a right to withdraw if the SP falls below the offer price for 4 days in a row.

"(ii) the Rights Issue offer price is greater than the volume weighted average market price for Shares as quoted by the ASX calculated over four successive trading days prior to allotment of New Shares;"

I would have thought the Chinese are the logical go to people should all else fail. We will have to see how well supported the rights issue is.

It seems the improving copper price hasn't helped much. These markets are really hard currently as retail investors are just focussed on the very short term trending stories (safety in numbers) and not value.

I'll be keeping an eye on this should a good opportunity arise. Esh​