My take on the capital raising: I think the MMN directors want...

My take on the capital raising: I think the MMN directors want to beef up the market value of the company to prevent a premature takeover, possible by Coer D'Alene, or by one of various Chinese consortiums.

With only $100m of shares on issue, the new float will raise this to at least $125m, forcing a takover bid to pay upwards of $160m. With Silver production now occurring, MMN's share price should be well over 25c, which would add even more value.

With the options currently being out of the money, I don't think this should be a concern, as you're getting them for free, and they can be easily sold on-market for 8-10c. Note also that you can apply for more shares than you are entitled for. This is a clear sign by the directors that they want to inflate the market cap, even if it leads to short-term dilution. The deal, in my opinion, makes sense for anyone who wants to make a quick risk-free 10-15% return, and even more for those who feel that a takeover could be coming..