questions and answers, page-40

Pepsipet, I agree that CRC has potential but it is all based on future drilling, extension in mine life and/or a higher gold price.

Even in the company presentation released today management is quoting a NPV of $82m. (I.e that should be the theoretical value of the company on the basis of their one and only project)

The company currently has 221m shares on issue and as per my post above will prob look to raise approximately $15m ($5 for cap-ex shortfall, $10 for op-ex and exploration).

So say they issue 1 new share for every 3 existing (largely to institutions with a small retail component). This would equate to an extra 73.6m shares. I will be generous and say that they raise at 15cents (i.e. approx current SP).

This would bring in $11,050,000 so a little less than what I think they need (but I'll be generous again).

They also need to give Molly Mines $4m shares at the time of development funding. So i.e. on the same terms above. This equates to another 26.6m shares.

So after all this CRC will have:

221m from existing shares
73.6m shares from the CR
26.6m shares for Molly
TOTAL: 321.2 million shares.

So even if I am generous and use a MC of $100m then that would equate to a share price of 0.311c

At NPV ($82m) only 0.25c

So yes the SP can and probably will go up and I am not trying to say it is a bad project or company, but to generate really strong gains (multiples of hundred, ALA NST) you need to be convicenced that A. mine life will be extended and B. production will be expanded.