shareholder value , page-54

I thought you guys hated note holders converting into shares.

Now the thought of repaying noteholders in cash scares the crap out y'all.

Hmmm -- sounds like free money is the ideal.


On 13 January 2012, the Company announced that it had executed agreements to issue up to 42,000,000 Convertible Notes with a face value of $0.05 to raise $2.1 million. A total of 53,400,000

Convertible Notes were issued during the period from 13 January 2012 to 25 June 2012 raising $2,670,000 before expenses. The Convertible Notes are referred to as Series 2 Convertible Notes. The purpose of the issue of the Convertible Notes was to raise funds to be used towards the Company’s ongoing exploration and development program.

The full terms and conditions of the Convertible Notes are set out in Appendix A to this Explanatory Memorandum. Key terms of the Convertible Notes are set out below:

* the Convertible Notes mature on 31 December 2012;

*interest on the Convertible Notes will be payable by the Company at a rate of 11% per annum, payable quarterly in arrears;

* the Convertible Notes are unsecured;

* the Convertible Notes may be converted by the holder of the Convertible Notes (“Noteholder”) into Shares at any time prior to the maturity date of 31 December 2012, at a
conversion rate equal to the lesser of $0.05 and 85% of the 10 day VWAP of the Shares as traded on ASX on the 10 days prior to the date the Company receives notice from the
Noteholder of the conversion;

* any unconverted Convertible Notes will be repaid at maturity;

* the Company can redeem the Convertible Notes at any time by giving 30 days written notice.



Company has 5 business days to issue the 3B. What's the hurry?

As Col McNight said - "What's not to like"