Hi Garry, I have answered your questions below:Why is...

Hi Garry, I have answered your questions below:

Why is retrospective ratification required ?

It isnt retrospective. RED is asking you to ratify the exemption from the ruling that IF they required a CR in the next 12ths, they can do so without shareholder approval (up to 15% issued capital)


What happens if the ratification not forthcoming ?

Then they cannot raise up to 15% of issued capital in the next 12mths without shareholder approval.

Is anyone aware of the Companies current cash position and current cash burn rate ?

This is not allowed. My forecasts are not accurate enough to print here as to many unknowns (eg: how much they produced from the start of this month is they key)

Surely if the credit facility has been down down then funds from the capital raising ( $15,000.000.00 ) are gone ?

No question about it. 15Mill was burnt through last qtr (CYQ3)

I know this is simplistic but if the $15,000,000.00 is gone (the credit facility is being used ) then the company is going through $ 2,500,000.00 per month net of income from sales
To me that means another capital raising to cover working capital prior to Christmas.

While it is possible that a CR is required I highly doubt it. The 8Mill draw down was specifically executed to cover operating costs and final CAPEX. Both CJ and GE have told me that the view of the board is that a CR will not be required for at least the next 6 mths. Now that the draw-down has occurred I dont have any concerns re; cash position. By all accounts production is running smoothly.