Proposed placing to raise up to A$10 million, page-6

Don't think they had the bandwidth to raise much more than this without going to shareholders and therefore potentially raising at an even lower price. And it doesn't appear that they had anything else sufficiently developed to spend it on anyway. So I think it is just funds for opex, and contingency. Noting that opex is much more than just salaries. Lease payments for Alaskan land as well as furthering Winx, YG and HRZ would be included.

Like Spiney said elsewhere, not sure why anyone would be surprised at a CR. We explore with equity (or asset sale) and can only raise debt for development (which requires a proven discovery prior). We needed the cash, as everyone reading the last 4C could clearly see. How much? Given no other 'projects' seemingly ready for investment, I guess that is determined by the worst case scenario options (post next drill) that the BoD is insuring for. All very prudent and hard to argue against.

Yet I feel very frustrated by how this has played out. I don't fault the BoD for geological results in the past. Nor do i fault them for the decison to go back to IW2....because sooner or later we needed to find out what the true scope of the HRZ vo/wc fairway was. I do however, have questions about the timing of some of their decisions....and particularly those where they had the information to time their decisions better. The current CR being a classic case.

Blind freddy (let alone the one eyed supporters amongst us) could see from the last 4C that a cash raise was needed sooner rather than later. At that time, we (the punters) could see that an FO had been agreed but not yet executed and we had no insight into how that would affect cash balances. We then had the FO details announced and could see that while the deal was a very good one (IMO) it did not help the parlous cash position. Then we had an Investor Presentation released into a vacuum, and we all remember what that meant in the past. Apart from the CR signalling interpretation, it also highlighted no drilling activities in 2020 other than C-1V. Not great for a share with limited fundamental value support and heavily dependent on near to mid term speculative sentiment. Hence the SP at 1.4c and the raise at 1.25c. These are all comments based on the rear-view mirror. But the BoD were looking out of the windshield and it confounds me why they didn't raise in July (after deal 'approved' but not signed, and before 4C released). If memory serves me correctly, we hit and held SP levels at least 30% higher than today. Which means that we could have issued 30% less shares in this placement or raised 30% more.

I have no problems handing out bouquets (and associated rewards) to management and the BoD when earned. But surely that means we should also serve metaphorical brickbats when deserved. As said earlier, despite adverse geological results, I am comfortable with many earlier BoD decisions and have said so. But getting the timing right on this CR has been a big fail IMO. We don't know what we don't know....but they knew what they needed to know to get the timing a whole lot better. And they should have.

Rant over. We are where we are.

We have the runway to take us beyond the next planned drill (C-1V). The FO has provided the ammunition to drill and test 420mm bbls of resource (nett to 88E) at no cost, in that C-1V well.. Not sure how much of that 420 mm bbls we can convert to 1P(PUD) after a (hopefully) successful C-1V. But whatever than number is could be valued from USD1.30 to 3.00 per bbl based on OSH/Armstriong transactions. Which could be very significant...even if it is spread over a 7.4b SOI fully diluted base. .

The way forward is that way.

All IMO and GLTA.