It's been interesting to read all the negative posts on the rights issue.
Macsshareforum is having a lot of fun again critising the issue even though he is not a holder, so is our friend Shady with all his knowledge.
All the 60% dilution hype is a red herring.
Phil Crabb can take up 22m shares with an outlay of about $500,000.
Let's say the next few biggest holders take up say 10m... $250,000.
Smaller shareholders take up say 20m... $500,000.
The underwriters take up their $1m .. 40m shares.
THX raise over $2million dollars and the shareholders participate in a capital raising that normally go to brokers.
The Directors have given the long term shareholders an opportunity to average down. Imagine the screaming if the placement was done to sofisticated investors at say 3 cents.
The rights issue comes at a time when GG claims are going to reveal their secrets. Apparently the hold up on final approval for the Crown Prince was a delay from the Meekatharra Shire. THX were obviously awaiting this approval before commencing the next stage of drilling.
The talk that THX needed approval of CP before planning the drilling program is just that talk. I have been told that POW's are in place, drill sites identified, extension to the CP claim area and system are all go.
Shareholders now need to make up their minds whether to take up the issue or sell their rights entitlement, or do nothing. I will be taking up my entitlement with a thank you card to Directors.
Posters who are not shareholders are unhappy because they are left out. Stiff titties.
THX Price at posting:
3.0¢ Sentiment: Buy Disclosure: Held
