Ann: Merger Presentation, page-90

@dbd25
Management here have a lot more info than anyone on whether the project is a goer as is....and took this route. Surely that tells you something. I think you can trust Ian more than just about any small cap MD out there.

No doubt as pushed by the RCF mob, but it honestly probably the only way a project gets up here. The capex is huge, the payback long, and the commodity price uncertain and still too low.
This way they get to approach gov & financiers for mighty big loans at a decent rate with just one project and not a potential sabatouer looking over each others' shoulder. The financiers were obviously saying no as the numbers stood (and this was a third attempt to get TMT going - think what the SP does if they shelved it yet again.......So you take what you can get, not what you hope for I guess if you are Ian. It's probably the last move left, and one that boosts the chances of things actually happening significantly.

I wonder now what the upside of a FID for the new AVL is, 7 cents?
The AVL reg is totally blown out by this deal and they still need to probably do half the capex raise as equity which will double the SOI yet again. So on that basis you'll end up with a 60 cent equivilent for TMT holders as it stands...
Hey, doubling your money is better than a kick in the pants. MUCH better than the kick in the bollocks the market's been giving me of late.