Ann: Proposed issue of securities - KGL, page-9

I completely agree that this recommendation would likely be the best outcome for all shareholders, including the Salim Group. Structuring a deal where Salim takes a 50% direct interest in the Jervois project while supporting the necessary equity funding would be a win-win. It provides KGL with a strong financial position without excessive dilution while giving Salim a meaningful stake in a high-quality asset.
Of course, it’s impossible to know Salim’s ultimate strategy. However, following their acquisition of Rex Minerals, an additional circa $850M is required to develop that resource. Given this, a 50% direct interest in Jervois—rather than taking on yet another full-scale development—may be a more pragmatic and capital-efficient option for them.
Additionally, I would like to see the board undertake a CSF digital marketing campaign. For a relatively small investment (<$50K), this could generate hundreds of EOIs. Granted, there will be some tyre kickers, and vetting EOIs would be a significant task. However, the fundamental laws of supply and demand apply to KGL’s equity. Anything that creates demand for KGL’s equity or direct interest in the Jervois Project should increase value for shareholders and, crucially, help push the Salim Group to the negotiating table.