It means that they have already identified the entities (Sunlander shareholders and mates of Forrest Capital) who will buy the 150million shares at 1 cent to therefore raise the $1.5million, which will allow the project to get off the ground.
The 150million shares that can be bought at 1 cent, come with a free option.
Currently there are >685million shares on issue. The shareholders of Sunlander will get 165million shares for their tenement, Teck gets 40million for a farmin (which is a bit light on detail in the announcement) and then there is the 150million shares, as described above. There are also 75million performance shares for Sunlander shareholders after drilling 1000m or 24 months. (incidentally, this is one of the two bits of the ann I don't like)
This will mean that post acceptance of this purchase, by RMG shareholders, there will be just over 1billion shares on issue.
There are also the options, with 8.75million on issue already, and the 150million free ones, attached to the issue of the heads, mentioned above.
This is all clearly spelt out in the announcement. The fact you need it spelling out to you, says to me, you should not be in the market, especially not at the speccie end of the market.
RMG Price at posting:
1.5¢ Sentiment: None Disclosure: Not Held
