Definitely the glaring question, “what is the funding strategy?”
4 choices, I see it
1. Director loans - unlikely, as this Board is a weak provider of capital 2. Placement - Possible, likely steep sp discount, but the air a little clearer after the strong Board vote versus Billis 3. Prorate rights issue with small partial underwrite - possible, but weak support from existing tired holders 4. New earn-in partner - unlikely in the short available time frame
Get the GPR earn-in project back, first, and so start with a 100% project area, then put a decent work plan together, that can shift the needle on the project areas, increasing the company value (market value).
Aim for capital raise of $3m, a 20% dilution if existing holders fail to take up any offer.
No other way, unless Billis makes a hostile takeover bid, but he’s already fluffed his lines, in an amateur attempt at Board change. He would have no idea what project work plans were necessary anyway, so don’t hold your breath on that one.
Bottom line, be prepared to stump up money, or get diluted, or sellout out, because the Board will need to act very soon one would imagine.
RIM Price at posting:
0.7¢ Sentiment: None Disclosure: Held
