bots or wots, page-27

I would say that the original plan would have been to do the resource upgrade at GR from the results released today and then use this to increase the share price, then go for a CR to fund BFS for groundrush. At 90 cents that would look like the perfect plan.

Shooting from the hip, and looking at where the good numbers are, we could be confident of a 200,000 ounces (20% increase). That would be a $10M market capital increase at $50 per ounce in the ground or 4 cents per share. Looking at the buy/sell there seems to be solid support at 50 cents per share. On the 15% rule, they could then issue 40M shares at 50 cents which is $20M in a CR, placement or rights issue.

As much as it hurts right now, I figure it will be a placement and rights issue for $20M at 50 cents in January.

Allied will want TAM to draw on debt. They may insist or even have a debt covenant that has the current debt converted at 50 cents prior to any CR which would mop up the 15% / $20M of new equity and allow TAM to draw down another $20M of debt.

$20M keeps them going to the BFS where they then can draw debt from local banks for the GR Central Tanami development. Borrowing from Allied is dancing with the devil. I have no doubt they are behind the small parcel trading. Having your lender/shareholder in the tent is very dangerous when they are Chinese. Personally, if I was the Chairman I would be working a plan for a CR to retire the Allied debt and facility and then do a CR (ie $40M). Short term pain but long term gain.