we were desperate...

I highlighted the cash risk after the last couple of quarterly and I was promptly questioned by a number of people., 'scent of an oily rag, we own our own rigs' etc etc

But this line in the ann basically backs up my cash concerns and everyone who thinks this deal is a bit too generous.... FNT had its back against the wall and needed a deal ASAP.

"The A$0.75 million placement to Newcrest injects capital into the Company at market price. Frontier
now has approximately A$1.8 million in cash to continue cost effective and targeted exploration on
our remaining projects to create additional shareholder value."

I read that as we now have $1.8m in the bank which means we would have had only $1m if it werent for NCM. Last quarterly we had $3m with expected $900k quarterly outlay. The quarter isnt even over yet!! You could read it that $1.8m is for other projects and FNT has other money for Andewa but that might be a bit of a stretch.

After I was impressed with PM's ability to get a deal done this statement has me doubting his managerial skills. To burn through last years SPP in less than a year is pretty bad. If it was solely on Andewa which was the main purpose of the SPP he could be forgiven but the amount of money spent on Tassie for my mind is crazy.

Now that money will no doubt be thrown at the bottomless pit that is Tassie. And I'm sure he has tried desperately to sell that off but no one is interested. When you are running out of money you dont sell your prized possession first, you sell the rubbish.... no one wanted to buy.

I just hope to hell this agreement gets signed otherwise we are in strife and may just have to sit on our hands and wait for OTML to do our work for us.

Rant Over