Ann: Appendix 3B-KBL.AX, page-10

You hit the nail on the head Kingston. That is exactly what they should have done and I don't doubt they would have contemplated what you say and run the concept past the money people who would have done DD on KBL.

IMO, given that KBL have resorted to near bottom of the barrel type capital raising I reckon none of the sophisticated big money people were prepared to underwrite or sub-underwrite an issue which in turn leads me to believe that the DD didn't return a positive outcome.

Now that I think about it, if the company was in good shape with plenty of resources and a bright future, why wouldn't Quintana advance a bit more? Or why would KBL resort to these cap raising methods if all was promising with the cashflows? Take a look at Havilla Resources, very similar story yet they simply walked into Investec and obtained a bank loan! Difference? Better cash flow and no debt