hmmmm, page-7

I agree that SHD have a better ore reserve position than WDR and that there is significant blue sky for further discoveries in the Yumanji area. However the capital structure of SHD is woeful with the agreement to pay the NAIO vendors 4.5c for each tonne of inferred mineral resource proved up. I received yesterday the information memorandum for the latest payment which will be satisfied with the issue of 42M new shares to NAIO (Jerry Ren). This will increase their shareholding to 64% of the company's capital. A further ore reserve increase of 320Mt announced in November 2011 will require a payment of $14.4M in April which will be satisfied by a further issue of shares - ?320M. This will increase the NAIO shareholding to 79%. This continued substantial dilution of existing shareholders interests makes this stock a poor investment in my view.