You may be right colonnade...From my understanding, CBH is in...

You may be right colonnade...

From my understanding, CBH is in phase 1 of their venture with PEX. This means that $1m was to be reimbursed for PEX's past expenditure (which has been made per cash flows report) and a further $1.5m was to be contributed for exploration (of which $750k of the $1.5m has been made per cash flows report). This gives them a 15% interest in the project, with $750 still outstanding.

In order for CBH to enter the 2nd phase of the venture, CBH are required to provide $2.5m for a further 15% interest in the project...

In this regard, should PEX decided to capital raise (to the maximum 15% of shares listed), this would contribute $5,805,013 @ 35c (i.e 15% of 110,571,683 shares listed).

So, in my opinion, although our shares will be diluted, it gives PEX more cash for the same interest. At the same time, it will also boost potential shareholders interests in the company for security reasons. In other words, I would be wrapped with a capital raise in this instance...