when you look back at end of march 03 they had approx 239,000,000 issued shares...
the end of march this year 04....639,000,000. as you can see thats an extremely large increase.
the problem is that it will only get worst in the coming months as they add more incentive shares..they recently added 80,000,000 shares (which is included in the march 04 figure of 639,000,000).
the next incentive will add another 85,000,000 shares (upon meeting performance requirements)
then you have another incentive adding 85,000,000 shares..(upon meeting performance requirements).
you'll have roughly 809,000,000 shares when you add the two figures above with 639,000,000.
plus i'm sure they have 100,000,000 shares in voluntary escow until about august 04. in which then will add to the above
so having said all that the total shares on issue will be around 909,000,000 at some point in the near future.
are the punters now factoring the above into the share price..????? who knows..
it does worry me from a dilution point of view..
see below some details about the above incentive program..
comments welcomed.....(correct me if im wrong on the figures)
On 12 August 2003, the Company completed the acquisition of all the issued capital of Carey Mining (2002) Pty Ltd being the company which owns the Carnilya Hill Project. The acquisition was approved by shareholders on 8 August 2003. The key acquisition terms were as follows: a) 100,000,000 ordinary fully paid shares (voluntary 12 month escrow from date of issue); b) Cash payment of $250,000; c) 250,000,000 View converting Incentive Preference Shares and cash payments upon the achievement of certain performance milestones being achieved on or before August 2008: i. 80,000,000 View Converting Incentive Preference shares and cash payment of $150,000 upon receipt of approval for a notice of intention to mine Zone 29 or Carnilya Hill Mine. These shares were converted to ordinary fully paid shares on 8 December 2003 and the $150,000 was paid; ii. 85,000,000 View Converting Incentive Preference shares and cash payment of $100,000 upon mining activities at the Carnilya Hill leases generating $12,000,000 in revenue; and iii. 85,000,000 View Converting Incentive Preference shares upon mining activities at the Carnilya Hill leases generating $20,000,000 in revenue from the Carnilya Hill tenements The directors expect that these performance milestones will be achieved. The fair value of the converting Incentive Preference Shares and related cash payments has therefore been recognised as an acquisition cost. Fair values were independently assessed (refer to note 5). This report is signed in accordance with a resolution of directors. Derek Lenartowicz Managing Director West Perth, Western Australia 15 March 2004
VRE Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
