Raising $25m via SPP is still a surprise to me, being it's size.
When last posting about the size of the SPP I asked the question "if anyone knows of a larger SPP could you please post it".
I didn't notice any replies, so I'm asking again, perhaps someone has become aware of a similar sized or larger SPP, please post it!!
If the size of the SPP is way out of the ordinary, I stick to my belief that something must be accompanying it to make sure of it's success, as it is NOT an ordinary every day SPP of $5-$10m.
Even the oversubscribed SPP last year only raised $9.8m, so there must be something exceptional to make shareholders fall over themselves to subscribe a total of $25m IMHO.
OK Warning, out of left field thinking from way outside the square!!!
Given the general meeting that gives the company back the right to issue another 15% of Mcap without shareholder approval, plus the large SPP, then add MA going to Mali, I think there is the possibility of some type of large deal in the wings. So I looked up what might be available in/around Mali and found something interesting..
The Sadiola mine and tenements are currently owned by the Mali government, handed back by IamGold and Anglo Ashanti Gold for the some of $1, with the transaction completed on 30th December 2020. This operation has a resource of 120m tonnes at 1.8g/t for around 7m oz of Gold.
https:/
https://www.sec.gov/Archives/edgar/...nterest-in-the-Sadiola-Gold-Mine/default.aspx
The resource is the sulphide component with the oxide component already being mined. According to a technical study done in 2015 around $US379m is the cap cost to bring this resource into production (7.2mt/a at 76% recovery for ~320,000 oz/a at AISC of ~$US816/oz).
All the DCF and NPV values were based on a Gold price of $US1,150-$US1,275/oz..
A copy of the tech report for those interested..
https://www.sec.gov/Archives/edgar/data/1203464/000119312516519504/d163307dex991.htm
The Mali govt are not miners, so I would assume are keen to get this resource up and running as a Gold mine, for taxes, local employment and their 10-20% of profits, so they would certainly be looking for a gold mining company to get this happening.
As coincidence would have it, I'm sure FFX would be looking for something to boost the Gold mining part of the company around the time of the demerger, to keep shareholders keen on the FFX growth story.
I'm not saying that FFX has anything to do with Sadiola, but Sadiola is just sitting there, Mali would want it happening and Firefinch would be in the good books for keeping Morila open..
Perhaps me just doing too much over thinking....
I just paid for my SPP, full $30k, about 2 minutes before the phone call from Lucas. I always consider that with company I've done well out, of I'll take up the full SPP when the company comes asking, as they have made money for me.
This even applies if I have to sell a few shares to pay for the SPP. I didn't on this occasion.
