......"Receiving PRCR 2000 for free???or Option to buy 2000 PRCR...

......"Receiving PRCR 2000 for free???
or
Option to buy 2000 PRCR for 70cents...."

NomadAUS and archie88 I will attempt to answer your dilemma as I understand it

Taking NomadAUS's example of say having 10,000 PRC shares then you will be entitled to 1 Right for every 5 PRC shares you own.

So yes 10,000 shares will produce 2,000 Rights/options or 2,000 PRCR.

Now if you wish to participate in the rights issue and convert those 2,000 Rights/options then you have to pay 70 cents for them per the number you accept.
So 2,000 x NZ$0.70 = NZ$1,400 and you will then receive a further 2,000 shares in exchange and increase your total to 12,000 fully paid PRC shares.
If you only want to convert 1,000 (or whatever number below you 2,000 entitlement) then it is say 1,000 x .70 or whatever the number you wish to convert.

There is an additional "come-on" because for every PRCR you convert then you receive another "Option" which can be converted at some date in 2010 (check the document for actual date) at a cost of NZ$1.25.
So if you convert 2,000 PRCR's by the due date in a few weeks then you will receive a further 2,000 of the later date options.

Now does that make sense ?