At first I thought that made no sense, but after reading the...

At first I thought that made no sense, but after reading the Options Underwriting Announcement, I can see you are probably right. The incentive for the underwriters is that the share price is over 10c, in which case they effectively make money on the difference in price between the shares and the shortfall options they must take up, or for the 5 day VWAP to be under 10c so the underwriting agreement can be cancelled. A share price hovering around 10c is not that great for them.

The other possibility is that the market doesn't like the grades from the drilling, which I think is also quite likely. I sold out when the drilling grades were announced in June as I didn't think they would make for a particularly viable mining operation, but I'll leave it to the experts for more informed commentary on that. Otherwise I like the story.