Ann: Proposed Cash Placing, page-12

For the sake of telling a story I need to mention other ASX companies. I don't mean to cross-promote.

I mentioned in my last post that CAS should have adopted a plan B shiftly when the funds dried up from the posse mine. I have told this same story before on HC a couple of years ago, and it was directed towards CAS management when I wrote it. It's a same it appears I was talking to myself at the time.

I say time and time again that it's the dilution that is killing CAS shareholders. CZI was a company that did it correctly and I wish CAS would have done the same.

CZI had at the time of the deal with Oz Minerals (OZL) a market cap of AUD$9.5M. They needed $36M to develop their deposit in W.A to the bankable feasibility study stage. CZI owns 100% of the West Musgrave deposit in question. CZI and OZL signed a deal where OZL could claim a 70% interest in West Musgrave for the $36M needed to develop to the point of time when the decision to mine needed to be made.

He's my point -- could you image the sort of dilution that would occur if a company with a MC of $9.5M would get trying to raise $36M over 3 years? It would be nuts to try and do that! Sure they could loss 70% of the deposit to OZL, if OZL decided to go ahead and mine, but CZI shareholders will still be miles in front with virtually no further dilution. Administration costs are a fraction at CZI in comparison to CAS.

What did CAS do? They tried to go it alone. Diluting shareholders to oblivion at rock bottom share prices. If CAS were raising at $1 a share like CAS once was this wouldn't be a problem. But to raise so many shares at possibly 6 cents is nothing short of criminal. CAS should have struck a deal with a major or another Stratex like partner 3 years ago when the money from posse ran out. There was still respect and confidence in CAS back then and the share price was around 40 cents. The dithering that has occurred over the last three years before Marcus showed up is unforgivable. All CAS is now is vulnerable, and apparently without a friend assuming that Marcus has tried to obtain a corner stone investor.

As mentioned, I have written about this before on HC. I'm only saying I have written about this already because I hate Monday experts. And don't want to be cast as one.