what is attractive about cav

1. Keeping liquidity down.
CAV is very careful with its capital, ie. it strives to obtain the greatest benefit with least number of shares.

Listed in March 2007, it had 23.35 mill mill shares for holding and trading and 21.7 mill escrowed shares (of which 9.4 mill shares will be listed in March 2008 and 12 mill in March 2009). There are no options.

For practical purposes, a very low number of 23.35 mill shares would be free, provided none were firmly held.

The top 20 holders held 59.4% of the shares in March, so, a much smaller component of the mentioned 23.35 mill would be "free" and that is not counting the additional firm holdings obtained by investors since.

The additional 45 mill options to be issued in July (Basis: 1:1) will free up the market of CAV to some extent, although the demand for these options could be high and many could be locked up.

2. Raising capital in small amounts.
CAV seems to be following the successful Canadian model when raising cash. It takes several smaller bites of new capital at increasing share prices rather than a bigger raising at a low share price, hence the total number of shares is kept lower.

A good example is the Announcement of 10 April:
". Placement.
The Company has agreed to place 5 million shares at an issue price of 35 cents each to Australian and Overseas institutions and sophisticated investors to raise $1.75 million before costs. The placement is subject to the completion of satisfactory due diligence on the Iron Ore Projects. The proceeds of the placement will be used to fund exploration on the Iron Ore Projects".

Comment: Current price is about $1.15.

3. PR.
CAV keeps issuing Announcements at regular intervals:
http://stocknessmonster.com/news-history?S=CAV&E=ASX&Year=2007

Good PR is important to shareholders.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.