I'm feeling a lot better about this...

PRECEDENT - Minemakers (MMS) in Australia:

-MMS mine has 5-10 year mine life for direct shipping ore (ours is 30 year mine life with emphasis on beneficiation not DSO. Thats like a gold miner who started producing a mine in 2000 and was all out in 2005. I'd rather take advantage of the future potential)

-Minemakers concluded it needs to raise $215M in capital costs (Legend needs to raise $800M, naturally higher for beneficiation)

-On June 2,2010, MMS annouced the positive DSO feasibility study with conclusions above. Feasibility study was completed by MMS with "numerous other consultants". (I'd rather have a Chinese established firm involved in the study). MMS stock price continued to fall like most other commodities.

-On July 27, 2010, MMS issued a trading halt and then annouced funding. (Starting to sound familiar??). The $215M will be raised by debt & equity funding. Equity funding was planned to dilute the float with 50% additional shares issued to partnership investors (and this is the interesting part)... at a "substantial premium" to previous close share price. Needless to say, stock went up about 15% on the positive news.

-MMS price is now about double what it was before the funding announcement.

http://www.minemakers.com.au/downloads/100726MOUtoAdvanceStrategicInvestmentofWonarah.pdf