Ann: Havilah Secures Funding of up to $100M from GFG Alliance, page-15

A dud deal..... again !

So for $6m GFG will get 38,961,039 shares at 15.4c each. At the same time I expect we shareholders will be issued $5m worth of shares at 15c meaning the issue of 33,333,333 shares (roughly 1 for 6.5 shares). End result is GFG will control 13.4% of shares on issue.

Then depending upon the timing of the ongoing $44m milestone payments the extra shares will be issued at firstly a 22% premium (namely18.79c per share) and the balance at a 35% premium (namely 20.79c per share) to end up with approx. 51% shareholding for a total of $50m.

So are we all happy to sell 13.4% of the company at 15.4c ?

Are you then happy to give someone the option to buy a further 37.6% at effectively 20c share ?

Don't be fooled, they are not paying $50m for half the company as it stands today..... they are effectively paying $50m for half the company after it has spend $50m on the projects.....so effectively $25m for half the company is what they are actually offering. That is a crap deal.

To me this is a takeover offer structured as a funding arrangement. Once you let them in the tent with this deal they will quickly grab the rest of the proven deposits via phase 3, 4 and 5 (next $50m) as they can/will acquire direct stakes in the actual projects which will be in addition to the 51% stake they control via HAV shares. If they want they can instead buy more shares at no more than 20.79c per share. Minority shareholders will be screwed - again !!

To those people paying more than 20c today....grab a beer, sit down and read the proposal and work it out. You are already paying significantly more than GFG will "ever" pay for shares in HAV for years to come ! (not advice, just a public notice)

No dramas with GFG doing the deal, good luck to them and their Bundaberg born banker- but the HAV Directors need to be sacked and I trust Shareholders will eventually wake up and reject this offer...so don't spend the $6m before the EGM to approve. GFG saw an opportunity to get everything instead of just the iron ore they were originally after at Grants and Maldorky and the Directors have folded.

Question for the Directors - What was wrong with doing just a farmin arrangement on the Grants and Maldorky deposits ?

As stated earlier - a dud deal.... again !!

Best outcome for shareholders, in my opinion, is that someone else now makes a takeover for the whole of HAV... $50m should just about do it I think.

DYOR please and make up your own mind. Happy to see someone pull my comments apart if they can.