Hi Muppet,You actually raise a very good point with respect to...

Hi Muppet,

You actually raise a very good point with respect to CCU. Depending on the size of the cap raise (ie.. $$$ value), it may be closer to (at, or even above) the current SP than we suspect. This simple reasons for this is as follows.

1. Silver has had a meteoric rise and ARD (whilst a long way from production), has not yet seen anywhere near a linear adjustment to the company's market cap.

2. If they raise $2M, that represents approximately 8% of all current available shares on ARD, $3M, 12% and so on and so forth. So, for someone to take a $2M position in ARD on market, would involved transacting around $7.5M shares. This just isn't going to happen and maintain a price of 26c, or anywhere near it (there just isn't near enough liquidity on market). Liquidity is further restriced by the fact that more than 60% of the shares on issue are held by the Top 20.

3. If they can raise at current SP, or very close, they are virtually able to guarantee an extra $7M in the bank come time of option expiry at the end of June. If I was an investor looking to take a reasonably large position in ARD (% wise), i would not want to do it at a considerable discount to current SP, and thus risk the future cash position of the company. I would rather buy at current market price, knowing that my investment in the company is going to be backed by a short term bank balance of circa $10M rather than $2-3M.

This may not be how it plays out, but if i was part of ARD management and given the future potential of the company, i would not be discounting my price as i feel i would be able to get mid tier investment at these prices without too much hassle.

Any other thoughts on this?