share purchase plan, page-9

Still irritated by this. As before, usual disclaimer feel free to correct me if I am missing something obvious but...

Let's hypothetically assume kawartha's 90M shares raise 10M capital. This has just diluted our shares by 10%, for a 10M gain.

Now if management truly believes in a 1 billion dollar company by 2010 as I have previously read, this is then the equivelant of losing 100M from the company value in 2 years time from a shareholders perspective, for 10M, if you don't buy in. I hope they are getting a hell of a good RoE on this 10M since it will be the equivelant of 1000% interest in under 3 years, ball park figure. Are we supposed to believe $1B is possible management or not?

Regardless of how many people partake in this offer, the ratios remain relatively similar I believe.

This may make the business look better, sure, and may look management better, but if they are concerned about shareholder value, I don't see how raising through dilution when the SP is as undervalued as it is apparently supposed to be (and I still believe it is).

I can be patient about Lichkvaz, I understand situations change. I believe ore grade will recover and will be patient and assume this is a temporary setback that will be rectified. I was not worried about the SP fluctuations, I believed it eventually return to fundamentals. But this all goes up in smoke if they screw around with dilution if the SP is as ridiculously undervalued as management claims it is. Especially when they said as recently as Feb the company doesn't envision any more capital raising.

Personally I am hoping I might still do okay out of this and not lose percentages, but many SH will do very poorly from this.

Is the flaws in this logic? Figures of course are rough but even if the situation approaches anywhere near this level, this is rubbish.

Is there no other way to raise money, and was immediate money so essential that they couldn't wait until their "really great" quarterly reports in 3 to six months time?

It would seem to me management is using money to make management look better at the expense of shareholders in this situation, unless they really did believe SH would be the only ones buying in at low prices, which I really hope they didn't.

I would really like an explanation as to the reasoning behind this and how this could possibly increase shareholder value. Anyone with answers to this or find out any possible explanation how this could be beneficial to SH, it would be very much appreciated if you posted it. Might ring myself and try to find out. Thanks.