what is the situation now?

Following the capital raising announcement on 27/05/2009 and Peter Ingram's (MD & Chairman) interview on 28/05/2009, this is my summary of the situation.

1. 40 million shares have been placed at 1.9 cents. This is not a large number in the context of things. More than 40 million shares have been sold in the past two days since resumption of trading. So it is possible that, should the institutions with whom the new shares were placed have chosen, those 40 million shares could have already been dumped

2. The committed equity facility will allow URL to draw up to $ 20 million by issuing equity. This equity WILL NOT be issued at a price of 1.9c. The issue price will be 95% of the lowest VWAP in the five trading days following delivery of the Advance Notice by URL to the financier, FIS. So this price is not capped at 1.9c. The agreement states that FIS is prohibited from short selling or hedging URL stock, so as to reduce the share price

3. In the interview on BRR (see http://www.brr.com.au/event/58008/url-capital-raising-and-end-of-voluntary-suspension-mr-peter-ingram-chairman-and-md, Peter Ingram said that:

There is interest in financing the Roseby Copper Project from Australian Commercial banks, hedge funds and foreign mining companies

What would the cost of operationalising Roseby be? I have seen suggestions of $200 million. Would a bank lend a company with a market capitalisation of only $11 million that sum of money? Risky I would think for a banker but I don't know what sort of debt:equity ratios banks are willing to bear in the mining industry.

If URL do issue more shares, I hope it is at a share price significantly above this week's.