I assume this capital raising is to avoid using the mezzanine...

I assume this capital raising is to avoid using the mezzanine $10mn facility with Macquarie and thus having to issue them with a heap of cheap options - I believe with a conversion price around 82c. This was part of the original loan deal with Macquarie last March and was the sweetener for the bank to counter their generosity with the hedging terms ($1544 per ounce).

I am guessing here - if anyone knows more about this I would love to hear. Maybe I have been too generous in my interpretation of the directors' skill and motives as possibly they have already drawn down this facility. I doubt this though as there has been no notice of issue of options to Macquarie.