AVZ had A$2M in the bank at the end of December, raised A$2.9M last month and have another A$2.5M due at the end of this month - not factoring in expenses of the placement & operating costs. They also issued 300M options @ 3c w/ a 3-year expiry (50M subject to SH approval), which will no doubt be exercised before the final instalment to Cominiere is due (see below) if the drill results come back positive during DD and the agreement goes ahead - potentially another A$9M incoming. Fully diluted, they'll have $A16.4M (~US$12.6M).
Dathomir actually get 19% of the project (10% + 260M/1774M of AVZ's 60% stake) - I made a mental note of this when I read the announcement, but hadn't bothered to do the maths until now - as well as US$750K upfront.
AVZ to pay Cominiere a total of US$6 million in cash as follows:
- US$100,000 upon execution of the agreement
- US$1,900,000 upon satisfaction of all conditions precedent (First Instalment)
- US$1,500,000 within 12 months of the date of the First Instalment
- US$1,500,000 within 24 months of the date of the First Instalment
- US$1,000,000 within 36 months of the date of the First Instalment.
AVZ to pay Dathomir US$750,000 in cash within 30 days of execution of the agreement, and issue to Dathomir and its nominees 260 million shares upon satisfaction of all conditions precedent.
AVZ to issue a further 160 million shares upon satisfaction of all conditions precedent, comprising 100 million shares to Mr Klaus Eckhof (a director of AVZ), and 60 million shares to other parties (not related parties of AVZ) associated with facilitating the transaction.
AVZ Price at posting:
2.9¢ Sentiment: Buy Disclosure: Held
