Ann: AVZ Fully Funded to Final Investment Decision, page-152

oxxa23,

Although it was a good result to eventually raise the full amount of money, as it IMO gives the company and project ongoing crediblity, the raising itself was pretty curious and unfair to shareholders IMO.

The SPP was set up as a type of market discovery lottery which used existing shareholders to discover a price of 3.8 cents which as you say was a big 43.28% haircut to the pre-SPP closing share price of 6.7cents.

The when it became clear that they weren't going to get far with oversubscriptions they went out and sold shares to the only players in town with deep pockets and an appetite for the project, the Chinese (for the "discovered" price that came at the pain and expense of existing shareholders).

The market tends to follow some pretty simple rules no matter the story. As shares on issue expand the abilty to raise at higher prices tends to diminish, particularly when share on issue start getting into the billions.

The number of SOI before the raising according to the last 3B was 1,888,461,449.

There will be about 257 million shares issued pursuant to the $9.8 million raising announced today and another ~136 million from the SPP which will bring shares on issue up to about 2,281,461,449.

It is my honest opinion that when a share register starts to ballon out to over 2 billion shares, SP going forward tend to struggle more often than not under the weight of such a large register. Just my observation from a long time in the markets. Esh