Killa68, thanks for the share price calc's I hadn't had time to...

Killa68, thanks for the share price calc's I hadn't had time to do.

The deal is potentially a dud in many ways - mainly the further conditional funding which needs to be further explored - eg: if the share price goes to $1 after spending the first $50 million for PFS etc, can HAV do a share issue at that price? Does it need to use SIMEC funding beyond the first $50 million or is that just there is case the share price is still low and it has no other access to funding, in which case it could be good).

However, consider option A and option B:

Option A

If the deal gets voted and approved, then what current shareholders will share in is 49% of the current assets of HAV with $50 million to be spend on developing iron and copper resources which is being overseen by a Board of potentially 8 directors, five of which were appointed by SIMEC.

Options B

The shareholders do not approve this deal. Then the current shareholders will share in 100% of the current assets of HAV, with access to funds to develop the assets, that is living on borrowed money with possibly no ability to repay the Investec loan in November without another bad finance deal or further share issuing at a lower price. But possibly worse than that, the same Board in charge.

If they are our only options, I will vote for Option A and take a half share in the existing assets with $50 million and good management.

I'm hopefully that other companies looking for an acquisition are looking at this and say "wow, didn't think it would go for that low, I'll double that offer". And if no other offers come forward, then the market has spoken and we should take Option A (if only because its a vote against Option B and the status quo).