Ann: Underwritten $22M Capital Raising, page-108

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readyaimfire

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18/07/19

21:40

Post #: 39590140
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Originally posted by paulgf ↑

A few after thoughts on today's release..........the board need to start thinking more strategically. This raise at a poor level was due to not having had the leg work done on a longer term strategy earlier , arguably the entire reason a board is there given they aren't out in the field doing the digging. It has been clear for years that Indee was always due latest by now ( with extensions available on table) so there should have been concerted effort to complete the PFS for mining prior to this settlement to ensure their was the best chance of having a coherent proposition to put to the market to raise more funds. Alternatively some 18 months ago if they knew PFS was likely after Indee was due then try and roll Indee back to get the PFS out first. This is basic stuff really for a board to be doing. Timing is everything for this end of the market.

Going forward if they are really serious about the future and given the damage to shareholder trust from the indee debacle and moreover that they are know asking existing shareholders to stump up more cash for this raise there should be a clear strategy put down on paper as part of the documents that support the raise as to not only exploration targets but how they are going to turn this into a mining venture. With almost a billion shares soon to be on issue its not enough to say we take the cash and just keep looking for more gold. This sort of stupid one dimensional thinking got them into this mess with Indee.

There needs to be a proper plan, with a mining objective and time line and consideration of other important items like the JV with Novo and development of our conglomerate assets and the lithium potential. And all of this bought into a coherent narrative. FFS this is what a board should be doing !! So thinking around how a plant is going to be funded and what options are there to JV with Novo ? Surely not every potential miner in the pilbara is going to build there own plant ? Whatever is almost done with the PFS economics , should be out in the domain now to support this raise if they are half serious about this. If nothing else having such a plan with actual timelines on it means we can hold the board and management to account as we go forward in the coming years and it forces a higher level of accountability. As shareholders we should expect nothing less and DGO and their new directors I hope will realise this is necessary to restore the trust of us retail shareholders, because surprise surprise in a couple of years time, more funds are going to be needed to build a plant ! Lets not wait until we run out of money again to start planning for what we know must happen if we are serious about turning this into a mining venture !

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it will be interesting to read the document that explains how the DGO appointees will manage the conflicts of interest which are bound to arise from time to time and what restrictions, if any, there are going to be on DGO trading its DEG stock

DEG Price at posting: 7.4¢ Sentiment: None Disclosure: Held
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