key pointsPattersons is the Lead manager and underwriterNote...

key points

Pattersons is the Lead manager and underwriter

Note Pattersons is ONLY underwriting 60 million of the total 99 mill new shares being issued

39 million are being issued to an unknown party or parties...UNDISCLOSED

262,183,923 shares on issue at this time

after new stock is issue there will be

371,183,923 shares on issue

This is a Renouncable rights issue and this is most unusual for a low cap stock

If shareholders fail to take up the issue then the underwriter will become a major shareholder

Its worth noting also that JABIRU Metals holds 30 million shares..and we don't know who is taking up the 39 million shares

If Jabiru takes up the issue of 39 million shares and its
placement rights it will hold close to 33% of the company

With pattersons holdings if most shareholders didn't take up their rights then between the two they would hold just under 50% of the company

Royal Blue/CTS FUNDS/First Transport services holds 28,361,624 shares at present

Between the three they would hold 160 million shares out of an app total of 371mill

As the report said the issue has been sought after by sophisticated investors...so all above points need careful consideration

all figures stated above should be checked for accuracy