Actually it could get a whole lot worse than raising capital at...

Actually it could get a whole lot worse than raising capital at 1.5 cents. Eg running out of capital in the next few months, then not being able to raise enough to knock the wolves out and thus being forced to continually dilute without advancing anything. It's a well trodden path to ruin for a junior explorer.

I agree that higher than 1.5 cents would be preferred to reduce the dilutive effect per my first thread. However we have to be realistic on our appraisal as to where the company is currently positioned.

I think it's indisputable that a capital raising would have to occur within this half. It costs in the hundreds of thousands of dollars a year to maintain our tenements let alone funding the necessary work to retain them (hence the need for farm-ins). Right now I'd guesstimate that we'd be sitting on around $400k or so cash if we had $500k at the end of July. That puts a cap raising as necessary within the next 2-3 months. At the moment we don't even have enough capital to take up the NT grant funding for our Tennant Creek project.

Yes it could be possible that something might happen with our assets to help place capital but we would need to be able to raise enough to blast through at least 12 months - this limping along is very detrimental for us. Mt Gunson likely won't be delivering any significant news in the next few months whilst Torrens are gearing up for their feasibility studies. The news on advance negotiations at Fowlers Bay is exciting, I'm very keen on that but what is that worth in capital raising currency? Until a deal is actually done, nothing of course. We're speculating but being conservative, even advanced negotiations can take months and the real value in a JV won't happen until exploration starts. Do you wait to raise capital until you know if you've got a partner? What if the deal falls through? Don't forget that the last capital raising, which I supported, was unfortunately inadequate and that was with general confidence in the direction of Mt Gunson. You'd be putting a lot of store on a JV announcement on Fowlers Bay to get a different outcome. Frankly we haven't been able to even dream of raising $3 million for a long time.

So, putting your management hat on, which we should do as shareholders, do you write this deal which offers:
- sufficient capital, potentially $3 million, to get through at least 12 months of serious exploration on at least 3 tenements by when many chips should be falling our way (Mission Critical in my opinion)
- new skilled personnel with the credentials and experience to potentially transform us as a mineral sands player
- a new tenement which early indications suggest might be a global class resource base
- a new look company
- and a group of new sophisticated long term shareholders (high majority escrowed) from the private placement

or do you hold on and hope that we get a JV on Fowlers Bay and hope that the market likes it enough that you can raise maybe $1million from your exhausted shareholders to allow you to limp on until some results start coming through from Mt Gunson studies and Fowlers Bay from roughly 6 months time on?

I reckon BB would be a strong chance of clinch the JV on Fowlers Bay based on his proven record but it's a no brainer for me. Transformation is what we need.