Yes, very normal for companies in particular start ups. I have no doubt that a capital raise, will be beneficial to shareholders. That's how good management operate and in the case of HVY, fortunately we saw the in with the good and out with the bad management. Capital raises take many forms and to provide some substance for such a broad comment, the importance in a capital raise is how they are done. Does it create dilution by flippantly issuing cheap stock to the brokers or does it provide for share holder participation via loyalty options etc? Or does it work on a basis of funding provided for royalties? Perhaps a finance facility could be on the cards, drawing down on available funds through this facility. The recent news with the letter of support certainly looks as though someone with deep pockets will support the project. Maybe it will be a combination of all 3, who knows. I'm guessing we will see a combination, including the issue of stock but expect this be minimal and not cheap, I base my comment on good management.
Anyone listen to the HVY segment at the Gold Coast mining forum? Im expecting it to show up on Twitter at some stage, google it and enjoy. HVY will have $40M after tax PER YEAR! That means dividends! And they have spoken about dividends a number of times including this segment. Who cares about a cap raise, you can't build a mine without money!
