tightly held, page-4

I'm not sure that I agree with some of those comments. I can't see why they'd need to do a cash raising any time soon.

Extract from quarterly report:

"RLC will be entitled to a cash payment of $0.5 M, and re-imbursement of exploration expenditure incurred in respect of airborne surveys commenced during the December report period."

The quarterly report shows that they spent $.5m in exploration last quarter - assuming that half of this was on the Bullamine project (work was also done at Edward Creek) then they will receive closer to $.75m from Cliffs. This will give them total cash of approx $1.25m - substantial when their market cap is only $6m.

The report also shows that their cash burn was about 30k last quarter (50k admin costs less income from interest). At this rate the cash on hand will last some time and give enough in the kitty for exploration of their other projects.

Also I note that the company has no debt.

Cash raising? I don't think so.

I do agree that the JV was probably already factored in to the share price. However, the SP seemed to be sold-off a bit at the beginning of this month. I'm guessing that was because people were having their doubts about the JV going through because of the long delay. Now that it has been confirmed I am anticipating it creeping back up to January levels of around 16c. Once we receive the announement that the cash has been received then 20c is not unlikely.

Those punters who were expecting a huge spike are dissappointed of course. No doubt they are the ones selling at the moment (they are nearly cleared out I feel).

There seems to be a fair bit of news due in March so I'm going to hang-on for a while.