"..they didn't need a trading halt for days for a placement,...

"..they didn't need a trading halt for days for a placement, probably their backers margined loaned upto the hilt and can not sustain any price declines..."


Doesn't sound like you read the announcement...the announcement to the market related primarily to the success of the trial plant at Chinchilla...news of the placement was very much secondary.

Personally, I'm a little mixed on the issue of the placement. Whilst I don't like particularly like it, I also think that perhaps it is a bit of a failsafe in case the $1.5B sale of the Esmeralda tenement falls through. After all, everything has just gotten cheaper than it was a little while ago, and with more desperate sellers about.

If it were to, LNC's shareprice would probably take a bit of a pounding, and it would make the raising of capital all the more difficult in the current environment...we might probably find that any raisings in that circustance would fail to command even the "giftprice" announced today.

I would always prefer to see rights issues and the like over placements, but sometimes it's just not the safest option.

Just the cost of doing business sometimes.