rights issue at 1.1c per share

Well, the phosphate project seems to gather momentum.

The capital raising we expected is a 1:5 non-renouncable right issue for $2,000,000 @ 0.011$ a share.

Not the best atm imo:
* Not the best for shareholders, as the offer is below market value atm.
* Not the best for successful fund raising either, because we might not get there fully. I believe it is a big ask to get every single holder to contribute. The last time I checked (last quaterly rep.) we had 898.4 M orddinary shares, which at 1:5 x $0.011 ~ 1.97 M$. Assuming top 20 contributes, we will only raise 78% of that monies or 1.5M$.

Talking cash flow, starting from 1M$ cash balance + 1.5$M raised = 2.5$M. Assuming $650,000 opex per quarter (btw where does the money go? $520,000 admin?!). We could run for 4 quarters but need to allow for some field work and for $500,000 aquisition in April 2009.

I would have thought the money that didn't get through BON last two oversubscribed capital raising would have found a welcoming home with UCL... Do BON holders know that UCL is next door on better grade and granted EPL licences?

I still think UCL is a more conservative option than BON, which I hold too in lesser quantity though, just as a bet for the northern region deposit and diams. Ah, and they are good talkers too (lots of froth). BON + UCL balance out well imo ;o)

In short, we had exciting news for the phosphate project development, the fincancing of it looks a bit less convincing atm, but at least the right issue has the merit to give a chance to the holder to contribute in the business, not just be in the passager sit, or throwing away some major holders controling power.

Anyway, we have plenty more capital raising in the horizon if we really want to pull that project off. We are just starting to create value. Can't wait to see that reflected in the share price! The sooner the better so that we can profit from that first good offer for that good project.