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31.0¢ tawana resources nl

Cap Raising Discussion, page-3

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17,842 Posts.

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16/08/17

14:04

Post #: 26534244
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Originally posted by UY Scuti ↑

From the PFS:

"Financing

Tawana has sufficient funds available to meet the requirements of the first A$12.5m of capital. In addition:
• Tawana and its joint venture partner AMAL have secured a A$25m prepayment (refer ASX announcement on 26 April 2017), of which $7.5m has been received to date.
• The remaining capital is modest and is shared 50% each amongst Tawana and AMAL. Tawana’s board believes funding requirements for the Project are modest in relation to the Company's current market capitalisation.
• The funding requirements for the Project are low and the payback is rapid.
• Tawana is already in early stage discussions with many potential financiers, the details of which will be disclosed when financing has been agreed and as required by applicable exchange and securities laws. No binding agreements for funding have been signed to date.
• Tawana’s board has relevant experience in financing projects and further is finalising the services of an advisor to assist the Company to arrange project finance. The advisor worked for more than 15 years with Macquarie Bank and is experienced in initiating and leading equity, quasi-equity, project finance for a broad range of resource projects.
• The production and economic outcomes delivered in the PFS are sufficiently robust to provide confidence in the Company’s ability to fund development of the Project through debt and/or equity financing."

Also note we are awaiting the Ta offtake agreement, which could have prepayments.

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Hi UY, if it's only a reasonable amount then let's hope they go with a fully underwritten rights issue and don't need to hit the bond markets like PLS and AJM. AJM paying 14% pa plus a substantial fee in shares and warrants. Better off to keep it inhouse I reckon.

Also, does anyone know what AMAL cash position is? Do they need to raise or are they all cashed up for whatever they have to contribute.

Thanks

TAW Price at posting: 22.0¢ Sentiment: None Disclosure: Held
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