more dilution..., page-8

Despite all the doom and gloom from current holders and past, this move demonstrates a few things. Administration are will to do what it takes to raise the cash to start mining and that should be their unswerving priority. forget other properties and other oportunities, its just another bird in the bush and we need one in our hand now to justify 43M +/- market cap.

This deal is not a bad one for current holders, because free options mean dillution, BUT only if the share price hits 4c+ which is really only a potential dilution and if dilution comes, it will under come under circumstances that have lead to a signifigant boost in share price. So for current holders who do not take up this offer due to limited funds and simply over exposure to this already dodgy stock, they really have nothing to fear from this SPP. Indeed, if 10million are raised its a good thing because it brings us one step closer to mining. However one step closer will not suffice. We need all the capital required to mine and i would guess 10 million will fall short. The market does not want the downside associated with this should it fail, and sufficient funds will reduce the downside making larger funds finally willing to have a look at the upside here. I am dissappointed FSE did not go for 25million and also that they did not extend this offer to non current holders. FSE need all the cash they can get and some potential dillution at 4c is not a reason to become shy and fall short. Close wouldnt do but im guess management are still hoping for a cornerstone investor albeit for a lesser amount.

my thoughts on the SPP, i would participate (provided options stand even if you sell the shares) if i could but an not eligible. getting a free ride on a potential winner like this would be great, holding shares in what may be a fortune maker or destroyer is an unhappy lot. My advice, take up the SPP, then sell shares and limit exposure and wait for and hope for production in next 1.5 years and then hey presto exercise options.... in the meantime find another vehicle for success with hard earned cash...


regards johnhuiz