I wouldn't be so quick to go down the negative path with this one.
After going over the failed FMG deal - Management were able to secure $650 odd thousand of funding from Albers at 3.5c and pass on 25% of Derby Block for 1.75 mil (same price they were going to give FMG)
This was a pretty good outcome considering.
Since then, the legal wrangling has definitely beaten the company down, but I think that management have done the right thing by only allowing small chunks of dilution in the interim i.e total $300 thousand placement.
With the resolution to allow 1/3 dilution (combination of OBL and OBLOB) I would be backing management in that this will not be done at 2c as per the recent placements.
I believe that management are expecting that post announcement, they will be able to offer the shares to a major (chinese) investor at a higher price because the SP would have rallied by then. How much ??? I don't know. What I am confident in is that we will be in a similar position to what we would have had with FMG, just a year later.
No need to panic just yet.
OBL Price at posting:
2.1¢ Sentiment: LT Buy Disclosure: Held
