on june 23, watso posted the following in a thread which he...

on june 23, watso posted the following in a thread which he titled "watso still here. gda still a dog"

"......watso would not be remotely surprised if the company is trying to organize a placement, at this very moment , or at the very least, seriously thinking about it."

in a follow up post, but on the same thread, watso made the following comment

"......... watso just reflected upon this, and wonders if this is why the company has not annoucned the date of the freebie issue - after all, this has been in the wind for so long now ( about 6 months). just speculating, but it could well be that the company is trying to do a placement, at this point in time, to maximize the amount of funds raised......."

now keeping the above points in mind, and then reflect what was mentioned in the thread titled "just a thought", where maffsmark1, made the following comment (june 26)

"......., i spoke to warren and he said that he the reason the long delay on the ann for the bonus is that they are putting together a prospectus...."

wow - watso sure was close to the mark. no warm fuzzy posts from watso - just hard hitting commentary

a prospectus possibly indicates that the company is going down the path of a public issue, to rasie funds, which is a possibilty mentioned in the spiel sent to shareholders, seeking approval for the issue of 20m shares. if this scenario is correct, then it might suggest that the company has not had success in making a placement to "sophisticated investors". of course, watso might be totally wrong.

just to digress a bit, but in general terms, this is what happens when a spec company tries to make a placement. . the md rings around, and chats to a few brokers, and if a broker is interested, they might invite the md, and geo in for a chat, and maybe the broker might do a ring around, and find some clients, who will take part in a placement - all very easy in a raging bull market - but maybe if things are not so bullish, the broker might still be interested (as he will collect a fee), and invite some clients around for a presentation by the company - in which case the md, and the geo, drop around, and present data, to try and impress the potential punters, who might be excited enough, to put in some funds. however, if there is not much excitement, then other sources of funding have to be contemplated

anyway, seeing that the company is going down the path of a prospecuts issue, and one might safely assume that it is not a prospectus issue for shareholders, as there would not have been any need to seek shareholder approval for such an issue - so it could be that it is aimed at the general public

the company did not really need to seek shareholder approval, to raise funds, as there is the 15% rule , where the company can make placements totalling 15% of the issued capitall, without seeking shareholder approval - this would have meant that the company could have issued about 8.5m shares, which along with the freebie issue, which was obviously designed to tempt option holders to convert, would have raised sufficient funds , to do the drilling at parker range, and other activities, till about christmas

anyway, the company is going to have to say something about funding , in the not too distant future. if there is going to be a public issue, then it potential punters, could probably be better of, to wait, and take up the shares in the public issue - after all, there will be the enticement of 1 free option for every two shares subscribed for

any option holders who read this post, could seriously think about doing the following - and using the following example

sell, 40,000 options at 10c = $4000

buy 20,000 shares at sub 20c = $4000


get 1 for 8 bonus share - ie now 22,250 shares

get 3 for 5 bonus options ie 12,000 options


so 40,000 options can be converted to 22,250 shares and 12,000 options, without putting in any extra funds - and maybe then sell the 12000 free options, and maybe buy about another 6000 shares - so it could be, that 40,000 options (which could expire worthless) could be converted into about 28000 shares - - and all without contributing any more funds

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