is there really a need for cash?

At 30/9 there was free cash of $46.2m on hand & it accumulating at $5m minimum per month. I have read the reasons for the share issue & they don't make sense to me. The company currently has a net cash flow of in excess of $50m per year & overdraft is long term far cheaper than having a rights issue.
I wonder if the main shareholder is planning on slowly increasing its percentage stake.
I would also expect as a shareholder that we would be supplied with details of feasibility studies for new projects-in short it seems too premature to be getting over $50m at present.
I would welcome other thoughts on this.