You are correct that the company will need money soon for...

You are correct that the company will need money soon for drilling.

However it is the means and price used that concern me.

Consider Passport - they probably purchased their 5% on market at around 90c. To be fair, any cash raised should probably be done above 90c for their sake alone, as they have shown tremendous support for the company so far.

My average is around 70c.

However if a placement is done to sophisticated only and that includes Passport, it would be in Passports interest to have the SP as low as possible to average down their price, and they would have the shares to cap the price - not hard with this stock!.

If it doesn't include Passport, then Passport will make it clear in no uncertain terms that they would want it above 90c - which is where it should be if it is going to raise a decent amount of capital.

Will it include Passport or not? - I dont know, but think there are ramifications.
Possibly also D.S. who holds many shares can't afford a rights issue, but wants to place shares to hand-picked investors that will stay onside with him. Maybe the Passport stake makes him nervous.

I always prefer rights issues available to all shareholders - even if I choose not to take them up. Games are still played, but everyone has the same opportunities.

I have been through this voting numerous times with companies claiming no alternative, and every time I have been burnt.
I dont have the shares to stop it, and D.S. has the bulk of the shares anyway so it will probably get up. But it doesnt hurt to make your thoughts known.
A no vote would not see an end to the company, it would just see a new approach for the capital raising.

After the scoping study is out (supposedly end April) I would think they would have enough info for a prospectus for a general rights issue where holders wanted to take them up.
How could we not have enough info from a scoping study? It wouldn't be worth the paper it was written on otherwise.