SaberX,On the ambit claim - the company has not fully explained...

SaberX,

On the ambit claim - the company has not fully explained (publically) what happened with the contractor, why the delay, and what the claim is based upon.

However, to plays the devils advocate... we agree that the share price is very low, and cash is tight. Given the low share price, any settlement of the claim via scrip would effectively by paying the contractor far more than the cash equivalent. They would be paying the bill using an undervalued currency (their own scrip).

If, to pluck a number out of the air, the company values itself at 50 cents (just hypothetically), if you were to settle the claim at say $7m worth of HGO scrip at a deemed price of $0.25, 28m shares, what HGO would effectively be doing is giving the contractor $14m worth of value. And payment for what? Delaying the commissioning? Gee, thanks guys, love your work!

Issuing more scrip, when the share price is at its lowest, means the maximum dilution. And the longer you wait, the worse it gets.

This is why I was urging the company to act quickly on the capital raising front (however that is done). These comments were made when the share price was around 24 cents. The price is now 18 cents and falling, in a weak market...

Please HGO, get it sorted, and fast. Because the potential dilution is getting worse and worse. And yes, the cashed-up vultures will be circling. But at this stage, the vultures can just sit back and wait...

yaq