I think it is understated how important this CR is for existing shareholders. Effectively to purchase an additional 15% of project NPV for 10% dilution. More importantly provided the following assumptions are correct, then:
Assumptions: - MC can be sustained and is a direct reflection of NPV of final project.
- 100% debt facility with no additional equity components for development.
Benifit's of this raise:
- Improved liability to benefit ration for AVZ.
- Improved market cap may help in securing funding from bankable feasibility requirements provided minimum market cap requirements can be sustained. This raise may directly contribute to the 100 %debt facility strategy - provided it can be pulled.
Caveat:
- Practically unheard of to raise a large development line of credit without a near equivalent equity portion. Not yet convinced that MC proportion to NPC doesn't exclude the assumption of a future equity raising - though happy to be demonstrated to be wrong.
