Is a capital raise / dilution under current board on the way?

It's clear from the information contained in the quarterly reports produced by Kingate they have a dwindling cash pile, if the board spill is avoided (slim chance imho) I feel shareholders will have to be approached very quickly to do a capital raise to ensure they have enough cash to

1) run the company for 12 months,
2) continue work in Chile
3) fund legal cases x 2

The trouble is the market and investors already know the desperate cash position, so the discount on the raise will be massive imho to current share price.

It gets worse imho as the current price is 40.0c, if MTR don't win the board spill they are likely to dump and run, crashing the share price as they look to protect their capital, lets say after MTR are out were at 25.0c, then add a capital raise at a serious discount to reflect the condition of the company say at 18.0c and let say they need a minimum of 15m AUD, you can do the maths, I am sure you won't be happy if you do the calcs.

It will get worse as those looking to fund will beat the company up and chase warrants or maybe even greater discounts, seen it all before, I can't see how the current shareholders are not facing massive dilution in Jan/Feb if board spill fails.

Before you say KCN have a 15m facility, they can not drawdown as they have no way of paying it off! Capital raise is inevitable imho.


I see my options are

1) get out now and protect what capital you have left.
2) Vote for board spill and get Chatree running again.
3) Stick my head in the sand and hope RSK and team stay and can minimise dilution and win on all three fronts.