The problem with Carnilya Hill, reading the Notice of GM, seems...

The problem with Carnilya Hill, reading the Notice of GM, seems to be lack of resources and reading between the lines negligible exploration potential. The Notice gives total resources of 63kt attributable to VRE at 30/6/10. Further, Mincor mined nearly 28kt in the 4 months to end October. 30% is 8.4kt mined ore attributable to VRE. If you do the maths and extrapolate, by my calc, there would have been about 30 months of ore left as of 30/6/10, now it down to about 24 mths. The key point though is what cash will it throw off over the next 2 years particularly if they don't need to spend on development?

I agree with other posters that existing shareholders will be diluted to nothing. You can be sure we won't be offered any of the placement which will go to insiders and clients of CPS Securities. It seems to me they are trying to buy VRE's share of Carnilya's remaining cashflow on the cheap and getting a listed platform to boot to enable their future strategies. Would rather see VRE's Carnilya share auctioned off - more transparent.