rights issue, page-4

Just a quick question from an inexperienced trader if you folks could help?
can one of you explain how this rights issue works, ie: I own less than 10,000 shares and I have the opportunity to buy twice tht at 1.3 with a free option. This is only going to cost me a couple of hundred straight up or is there a balance owing at the end of the rights trading period? Any help would be much appreciated. Cheers; Dave.