overview of gondwana, page-2

further information on the bonus issue of shares and options if the consolidation proceeds with the support of shareholders later this month.

extract from the rights issue offer document.....

Bonus Issue of Shares and Options
Subject to the general meeting passing the resolution to consolidate the capital, the
Directors have resolved to make the following Bonus Issues:
(a) Bonus Issue of Shares
A bonus issue of shares is proposed on the basis of one (1) new free share for every
(8) shares held on a record date which will be advised (and which will occur after
the consolidation has been approved).
(b) Bonus Issue of Options
A bonus issue of options is proposed on the basis of three (3) new options for every
five (5) shares held on a record date which will be advised (and which will occur
after the consolidation has been approved). The options will be exercisable on or
before 30 June 2010 at a (post-consolidation) price of 12 cents each.
The proposed record date for the bonus issues of both shares and options will be
announced in the Notice of Meeting that is currently being prepared by the
Company and which will be sent to shareholders.

I was initially a bit sceptical about the consolidation but the methodology seems well considered and the bonus issue is a pretty good deal I think.

Gondwana also announced a lot of options were converted (asx GDA ann' 7 dec 07). My estimate is that the company gets a further injection of funds fro the huge conversion of options amounting to $519,755.16, which reduces the number of options heaps as well, gdaob from 45.45m to 27.8m and gdaoc from 53.98m to 25.39m. There will be new gdaoc options issued as part of the rights issue ( to 93,842,432 if all taken up via the rights offer)
The huge conversion of options illustrates the benefits to option holders and also to the company of the options being "in the money". This is a bonus for the Company with its exploration and jv options now.
They raised $105m in the initial rights offer).
cheers fatstocks.