re: capital raising 14.1 million shares placed to clients of...

re: capital raising 14.1 million shares placed to clients of Veritas securities at 32c to raise approx $4.5 million.

Shareholders have the opportunity to purchase up to $15,000 of shares at 32c per share. With approx 568 shareholders (2010 Annual Report), this is a max of around 26.6 million new shares to raise an additional max of $8.5 million before costs.

Sounds to me like Hebei Steel havent been able to secure the initial $2.5million or $9 million for working capital and to secure long lead time equipment so this must put in doubt the whole funding arrangement imo. Only time will tell.