Harriska in your calculations you made some statements about...

Harriska in your calculations you made some statements about Pala's 1.2% fee which may not be correct. Following is the cut and paste from the ASX announcement:

"In consideration for providing the Equity Facility, Pala will receive a fee equivalent to 1.20% of the
facility annually in the form of PENOC options (based on 30 day VWAP calculation) in staged tranches;
47% of the options to be issued upon execution of the Equity Facility agreement and 13.3% on each of
the four following anniversaries."

You stated:"Pala receive a fee equivalent to 1.2% of the facility annually (whether drawndown or not)" and " I imagine, which would see another 12,000,000 free PENOCs being awarded virtually straight away"

The announcement says: "47% of the options to be issued upon execution of the Equity Facility agreement"

Now the key is when "execution of the Equity Facility agreement" occurs. Unfortunately, those finer details aren't included in the announcement.

However, to take a positive viewpoint, they may well not execute the agreement until they need the funds and then they will have the equivalent of $100M loan at 1.2%/annum if my understanding is correct. Pala dont get free options. They are a fee for the $100M facility. The $100M should see PEN through to production in Q1 2012. cheers!