Taking a look at HGO in finer detail Bayhunter. What has HGO to offer compared to CYM's tennaments
HGO & Freepoint Metals & Concentrates LLC
Freepoint to provide Hillgrove with a price protection program for at least 16,000t of copper in concentrate, approximating to 50% of the first 2 years of production.
Freepoint entered into a binding, conditional term sheet with Hillgrove to participate in the Freepoint Placement.
Placement issue of 293,572,200 New Shares to raise $15.6 million (before costs) ("Tranche 1 Placement")Thursday 9 March 2023;
then issue of 64,918,366 New Shares to raise $3.4 million (before costs) ("Tranche 2 Placement"), conditional on the Company's AGM vote on 28th April 2023.
Canaccord Genuity (Australia) Limited are acting as the Sole Lead Managers for the Placement and SPP.
The Hedging Program, the copper price being greater than the aggregate of A$12,500/t plus hedging margin
The company carries forward A$235m in income tax losses + A$17.2m in Franking Credits.
Current LOM = 4 years at a mine with pre-existing infrastructure.
Seems this finance deal is high risk & is all dependent on a higher copper price or they will be adding to the A$235 income tax losses.
Having said that HGO is likely to be ok as Copper prices increase towards 2030 as has been AR1 with all their start up issues.
Derek Carter HGO chairman and chief geologist discovered the Los Santos tungsten deposit in Spain, founding & ran Minotaur which discovered the Prominent Hill Copper/Gold deposit in 2001. Oxiana Ltd moved to take over Minotaur Resources 35% stake in Prominent Hill in a friendly deal during 2004 giving it 65% ownership of Prominent Hill, then Oxiana Ltd by scheme of arrangement spun out Minotaur Exploration in 2008.
Prominent Hill was later taken over by OZL which is now being taken over by BHP. You can see why BHP wants OZL. Prominent Hill, Olympic Dam & Carrapateena + not far away as the crow flies is West Musgrave Ni/Co/Cu/Au/Ag/Pd/Pt giving BHP a copper stranglehold in central Australia.
Looking at HGO Directors, it seems Murray Boyte Chairman of Audit, Risk and Treasury Committees is a great addition to the HGO corporate structure. Murray has over 35 years of experience in merchant banking and finance, undertaking company reconstructions, mergers, and acquisitions in Australia, New Zealand, North America and Hong Kong + is a member of MAICD.
