Ann: Quarterly Activities/Appendix 5B Cash Flow Report, page-7

"I think anyone has to remember that these guys thumbed their noses at $100m for the iron ore projects in 2019"


During early May 2019, Havilah's Board at the time entered into a Share Subscription Agreement ('SSA') with SIMEC Mining (part of the Gupta Family Group) consisting of A$50M in committed share equity funding over three years and a further up to A$50M in conditional or discretionary funding.

The up to A$50M conditional or discretionary funds were specifically to be allocated to developing Havilah’s iron ore projects (i.e Maldorky, Grants, and Grants Basin) and the copper prospects in the Mutooroo Cu-Co district to DFS status.

After a proposed A$5M rights issue to existing Havilah shareholders, it was calculated that the committed equity funding portion of the SSA would give SIMEC Mining a 51% equity interest in Havilah.


@ceh2009

There was a reason Havilah's shareholders rejected the deal, in record numbers. It was a bad deal then, it has not improved with age.

Couple of facts you may have missed re: the SIMEC Mining deal.

1. It was never $100 million. Only A$50M of funding was committed.

2. There was nothing stopping SIMEC Mining subscribing, in one go, for A$50M of Havilah shares on day 1.

3. For A$50M SIMEC Mining would have got control of Havilah.

There was also never any control premium to be paid to get 51% ownership.

Control would have rested with SIMEC Mining for voting on ordinary resolutions at an AGM or EGM. An ordinary resolution can be used for removing Board members.

In fact, on a net basis, SIMEC Mining would have got control of Havilah for just A$25M (A$50M less its 51% share of the A$50M sitting in the Havilah bank account).


4. Effectively it would have given SIMEC Mining, for free, 51% of any Kalkaroo Project sale consideration.

5. A majority of Havilah shareholders rejected the SIMEC Mining deal. Yes, one of those shareholders who voted AGAINST the deal was Trindal Pty Ltd (the shareholders of which are Dr Chris Giles' family members).




Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.