I would agree with your sentiment at an issue price of $0.105 AUD per share.
However, the value referenced is $4.5M USD which would equate to price of $0.15 AUD per share being a discount of 25% on yesterday's close. A discount of 25% is the maximum allowable under the rules (according to my understanding of them).
It may be that the sophisticated investor is the party who would lend the $32.5M, and in that event the 25% discount ($1.5M USD) becomes an establishment fee for the loan from the lender's perspective.
What this thread aims to explore are the options that are open to KNL management in the event motion 3 is approved at the AGM on November 30, and the types of announcements that may follow soon afterwards. Given the published timelines to production, and update on finance will need to be imminent after the AGM if KNL is to go mining early in 2017.
The example I have given, I think, falls into a worst case scenario.
KNL Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
