meeting - issue of 100mil shares and options, page-14

I'm not really being negative about the dilution, just saying you can't expect people to sit back and take a bigger cut in their investment when they can on the spot take 16% before anyone notices. It's not a stupid or illogical decision to make. I was more defending that.

The dilution isn't bad in and of itself, it basically means something good is coming. It's just that the something good isn't quantifiable yet but the dilution is. The company obviously wasn't in the position to do so but if you got the positive and the negative at the same time they'd at least balance each other out, and more than likely provide a good run. S'all I was saying.

It's quite possible the SP will be higher by the time a deal is worked out. I don't share everyone's confidence it will double or triple though. I think the deal will be the thing to really push the SP not the awarding of Derby.. Although to a certain extent Derby is derisking a deal so it's kind of a related thing, hard to know with pending Backreef/Buru litigation etc etc. It's more likely at 2.5c than 2c I was more trying to empathise with the seller.

I don't really complain too much about dilution generally. I factor quite a lot in when I first invest and hope to be surprised. It provides funds and gets things moving. Probably the only negative thing I can say about the dilution is that it's quite a lot and it shows that people aren't finding the permits that attractive. NSE or BRU didn't need to give the companies farming in a slice of their share registers AS WELL as a % of the permits. Often a company can get a farm in deal AND some cash, ostensibly to cover past expenses. I guess OBL just really needs funds. Or it's just to provide absolute maximum flexibility. They do seem to offer up equity a lot though. The deal with Albers wasn't at 3.5c, from memory with the free options factored in it was closer to 2.2-2.5. I really didn't like that deal no one here liked what either of the two Derby deals valued Derby at.