Ann: Royalty Funding Completed, page-10

Hey Kervio- I don't mean to be rude mate - but as you really don't seem to know what you're talking about, -as it seems from your comments above - then Hey Kervio- I don't mean to be rude mate - but as you really don't seem to know what you're talking about, -as it seems from your comments above - then its probably best to keep your negative down-ramping comments off here as they serve no real purpose - unless you yourself are trying to buy-in cheaper.?

let me try to correct you on some things you said above.

1. Firstly IMO- We need to take our hats off to Adam for introducing a new and much-needed form of financing to the ASX market. Syndicated pre-paid royalty is taking off a storm in the US and European markets as it saves shareholders from the excess dilution normally inflicted on them by lazy ASX directors who raise money, often just for their lifestyles, at the expense of diluting shareholders.

I believe almost 50% of the money raised last year by developing resource companies in the US was raised via royalty funding - not issuing millions more cheap pieces of paper.

In HVY's current case the shares are worth an MC of A$6 million- while the company has a current NPV of A$300 million. (that's based on the old scoping study increased for their upgraded new Jorc resource). HVY got pressure from many brokers wanting their 6% raise fee, free oppies and cheap paper for their clients to raise money the normal way - But adam held off- for his own sake (as a large shareholder) -and for the shareholder's sake. More such behaviour from other directors would make the ASX a better place to invest.

2. why do you automatically call Next investors "pumpers"? They undertake a paid for and necessary service getting news and info out to people like you. They openly admit they get paid in stock for this service and of course, and yes they want the price to rise - just like all other investors who go long. This doesn't make them pumpers - so why call them that - it is as ignorant as me inferring you are downramper as above without knowing you or your situation. But in my case thats logical as I really can't see any case such as you getting paid-as to why else you would be so antsy and negative? - unless perhaps you are just of sour character normally?.

3. HVY did not get "nearly half from the last round of funding"- they got A$ 2.1 million as announced this tranche1 with A$850,000 from private investors (disclaimer-one of whom was myself -I like royalty funding deals)- I hope and expect to make about 400% on this deal over the years with limited risk - and all my money and some hopefully back in my pocket in 2 years. I also own shares for the big win.

The rest came of the funding they say came from their planned transportation company - IMO thats a positive and strong thing having your business partners willing to have the faith to invest in funding your business. Have you ever had that? Moreover, it states that Campbells are ready to fund tranche 2. probably for a million or so more.- which is even nicer.

4. The options are attached to the royalty loan at 25 cents strike - with one oppie for each 1 dollar you invest - that means A$2.1 million is being raised by just issuing 2.1 million options - which then get a further A$525k later in to the co to become shares.

Had Adam raised the A$2.1 mill capital normally like others by just selling new discounted shares at say 8 cents in the market with a 1 for 2 option -as might be normally expected in this downmarket time? - then HVY would have had to have issued 26,500,000 new shares. and 13,125,000 options - making a total of 39 million more shares (or a 60% dilution of the company) As it is now he did it by only diluting the company by 3%. I'd call that comparatively very non-dilutive? wouldnt you?

5.As for the ATM (at-the-market) financing arranged with acuity capital that is just a standby facility whereby if the company needs money they can tell Acuity to sell shares when the price is high. But if they don't need the money (cos they got it through Royalty funding) then they can just cancel the facility and said shares. This is another innovative and unusual type of financing option that again benefits shareholders and should be more used by the ASX companies. Its practical and non-dilutative too -not "smoke and mirrors"

6.It is such innovative financing techniques that make me think Adam is more likely than most to get the capex raised and this company into production without the massive dilution one may expect from normal ASX juniors. Just watch, iIhope to see no more than 75 million shares on issue when this goes into production in 2 years or so. and based on the independent SS - if all things stay equal HVY should make around A$40 million a year profit post-tax.

with only 70 mill or so shares issued that will be around 57 cents per share - on a normal 6x pe that would allow HVY shares to reach around A$3.50 in the next two years. - that's a potential 17x gain! That alone is a good reason to buy and hold this share. - but if you do want to "blah blah blah" hold it for divvies and get say 28cents share of that 57 cents as divvies - that's a nice 200% annual dividend based on today's price.- that's better than 6% of money in the bank in your retirement.

This stock may rise a lot or it may fall over like all speccy resource stocks - who knows - certainly not me -but so far so good- So Im taking a punt on this deal working -so mate please I'd Kindly ask you to study and research a bit more about the facts before you launch so readily into such negative uninformed comments which are offensive to professional investors and shareholders, like me, who have done a great deal of research into this company and royalty deal.its probably best to keep your negative down-ramping comments off here as they serve no real purpose - unless you yourself are trying to buy-in cheaper.?

let me try to correct you on some things you said above.

1. Firstly IMO- We need to take our hats off to Adam for introducing a new and much-needed form of financing to the ASX market. Syndicated pre-paid royalty is taking off a storm in the US and European markets as it saves shareholders from the excess dilution normally inflicted on them by lazy ASX directors who raise money, often just for their lifestyles, at the expense of diluting shareholders.

I believe almost 50% of the money raised last year by developing resource companies in the US was raised via royalty funding - not issuing millions more cheap pieces of paper.

In HVY's current case the shares are worth an MC of A$6 million- while the company has a current NPV of A$300 million. (that's based on the old scoping study increased for their upgraded new Jorc resource). HVY got pressure from many brokers wanting their 6% raise fee, free oppies and cheap paper for their clients to raise money the normal way - But adam held off- for his own sake (as a large shareholder) -and for the shareholder's sake. More such behaviour from other directors would make the ASX a better place to invest.

2. why do you automatically call Next investors "pumpers"? They undertake a paid for and necessary service getting news and info out to people like you. They openly admit they get paid in stock for this service and of course, and yes they want the price to rise - just like all other investors who go long. This doesn't make them pumpers - so why call them that - it is as ignorant as me inferring you are downramper as above without knowing you or your situation. But in my case thats logical as I really can't see any case such as you getting paid-as to why else you would be so antsy and negative? - unless perhaps you are just of sour character normally?.

3. HVY did not get "nearly half from the last round of funding"- they got A$ 2.1 million as announced this tranche1 with A$850,000 from private investors (disclaimer-one of whom was myself -I like royalty funding deals)- I hope and expect to make about 400% on this deal over the years with limited risk - and all my money and some hopefully back in my pocket in 2 years. I also own shares for the big win.

The rest came of the funding they say came from their planned transportation company - IMO thats a positive and strong thing having your business partners willing to have the faith to invest in funding your business. Have you ever had that? Moreover, it states that Campbells are ready to fund tranche 2. probably for a million or so more.- which is even nicer.

4. The options are attached to the royalty loan at 25 cents strike - with one oppie for each 1 dollar you invest - that means A$2.1 million is being raised by just issuing 2.1 million options - which then get a further A$525k later in to the co to become shares.

Had Adam raised the A$2.1 mill capital normally like others by just selling new discounted shares at say 8 cents in the market with a 1 for 2 option -as might be normally expected in this downmarket time? - then HVY would have had to have issued 26,500,000 new shares. and 13,125,000 options - making a total of 39 million more shares (or a 60% dilution of the company) As it is now he did it by only diluting the company by 3%. I'd call that comparatively very non-dilutive? wouldnt you?

5.As for the ATM (at-the-market) financing arranged with acuity capital that is just a standby facility whereby if the company needs money they can tell Acuity to sell shares when the price is high. But if they don't need the money (cos they got it through Royalty funding) then they can just cancel the facility and said shares. This is another innovative and unusual type of financing option that again benefits shareholders and should be more used by the ASX companies. Its practical and non-dilutative too -not "smoke and mirrors"

6.It is such innovative financing techniques that make me think Adam is more likely than most to get the capex raised and this company into production without the massive dilution one may expect from normal ASX juniors. Just watch, iIhope to see no more than 75 million shares on issue when this goes into production in 2 years or so. and based on the independent SS - if all things stay equal HVY should make around A$40 million a year profit post-tax.

with only 70 mill or so shares issued that will be around 57 cents per share - on a normal 6x pe that would allow HVY shares to reach around A$3.50 in the next two years. - that's a potential 17x gain! That alone is a good reason to buy and hold this share. - but if you do want to "blah blah blah" hold it for divvies and get say 28cents share of that 57 cents as divvies - that's a nice 200% annual dividend based on today's price.- that's better than 6% of money in the bank in your retirement.

This stock may rise a lot or it may fall over like all speccy resource stocks - who knows - certainly not me -but so far so good- So Im taking a punt on this deal working -so mate please I'd Kindly ask you to study and research a bit more about the facts before you launch so readily into such negative uninformed comments which are offensive to professional investors and shareholders, like me, who have done a great deal of research into this company and royalty deal.