I asked DT for thoughts on drill for equity v CR:"Correct, the...

I asked DT for thoughts on drill for equity v CR:

"Correct, the drill for equity combined with EIS co-funding ensures that these drill programs are fully funded.

Regarding how drill for equity is favourable over a capital raise, I mentioned back on 4 June:

“The drill for equity arrangement can be viewed a couple of ways, it can allow us to drill more holes with the funding we have or allow us to drill the holes we need and give us more time with the funding we have.

As drill results are one of the best ways to move the share price this arrangement gives us more drilling and therefore more opportunities to make a discovery, it also gives us more time to deliver drill programs and/or deliver deals.

Another benefit of the drill for equity program is that it is at our discretion if we use it or not. The amount that Topdrill has offered is enough to deliver multiple drill programs across multiple projects. And if we do not need to use it, we don’t have to.

Thirdly, it is a large vote of confidence and shared risk with the drilling contractor. Topdrill has backed some great explorers, and we certainly hope to be part of that list.”

Put another way, Capital Raises are always better with positive momentum and exploration (i.e. drilling) success. Drill for Equity allows us to drill more holes over a longer period of time to improve our chances of success and building proper momentum.

Positive momentum and exploration success should improve the share price and reduce the dilutive impact of any capital raise. Additional time also allows for deals to progress which may result in non-dilutive capital injections.

Further, drill for equity is a shared risk with our drilling contractor. By the time invoices are issued (and thus prices set for the shares) the market will likely know the results of drilling which could lead to a higher or lower share price. Plus, we have the flexibility to use or not use the shares to pay for invoices.

Drill for equity allows for more opportunities for success, more time and flexibility. A capital raise locks in low prices and gives us fewer opportunities for drilling success and less time"