re: Ann: Transit Completes Placement to Raise... "The Company...

re: Ann: Transit Completes Placement to Raise... "The Company will issue approximately 17.0 million shares at $0.56 each. The placement is to be split over 2 tranches.
The First tranche of 6.6 million shares will be allotted
on or about 23 June 2011."

Good points about announcement:-

(1) Its at a price of 56c (higher than 50c previously rumoured).

(2) Its not a huge capital raising. 17 million new shares when existing shares on issue are about 50 million.

(3) Its split into 2 tranches with second tranche to be alloted after shareholder approval in July-so effect of newly issued stock flooding the market will be minimised.

Bad points-

Announcement refers to drilling program commencing in August not July "The Company?s maiden drilling programme is
scheduled to commence in August 2011."