trading halt, page-64

The company has prev stated they wish to minimize dilution... and So have pursued several companies for finance and have signed a non binding deal with Blackrock to that end...

AVB have also mentioned on the 1st Oct "...To date four site visits have been completed by various financiers and due
diligence by three international groups is being finalised. The parties have presented different requirements on structure and outcomes with the adjudication process focused on targeting an optimum result for shareholders...."

So based on this I would expect we will be presented with more offers of Finance for the $12m shortly... on stage 1.

In the same 1 Oct Announcement,the company also, stated "...Upon resolution with one of these parties Avanco anticipates being fully funded for the development of Stage 1 and co-advancement of the much larger Stage 2 (Pedra Branca) Project..."

So we know they are thinking beyond stage 1 finance already.


So my take is the following ...Its likely to be one of the following options.

1. They go with Black rock but need some cash to satisfy BR deal requirements ie increased Jorc certainty so smallish cap raise sub $5m to get her over the line.

2. Have received and agreed to an alternate suitors offer perhaps part finance /part cap raise thus need to raise a small portion (Perhaps with no royalties?)

3. Decide to dump all offers on the table and go with cap raise for the $12m themselves. Not a bad outcome as no need to Upgrade Jorc and project can start immediately. Also no royalties overhead

4. Simply drawing a line between Stage 1 and 2 as different projects and doing a raise to complete the BR deal ie Fund Costs of Stage 1 Jorc Upgrade plus a much larger cap raise for the ramp up of Stage 2 drilling as highlighted in the Oct 1 ann...underlined above. Perhaps with Blackrock as the financier

5. Maybe a cap raise to "swallow" VOR... Long shot as I think they have enough on their plate at this point without that complication.


My guess is number 4 as it seems the most logical given prev anns.