Ann: Havilah Secures Funding of up to $100M from GFG Alliance, page-41

Cant decide what I think. I think its ok
positive Thoughts:

-New board member from SIMEC = great
-Money to actually advance projects attached to reaching milestones = great
-fully funded two projects to DFS stage (CAP is still chasing funding for DFS) = great
-SIMEC willing to invest $100m in a company valued at $33m = SIMEC confident in projects = great
-Strong connection made with SIMEC/GFG = great
-Publicity for HAV due to connection with Gupta= Great
-For years I've been reading about HAV's potential, based off huge resources, but nothing has really come of it. This deal thrusts HAV into the spotlight and funds major works to advance projects.= great
-On my reading HAV can raise funds at market prices if the share price appreciates. SIMEC can participate if they want.= may not dilute as much as first thought if share price appreciates. see quote below.= good



-Even if dilution is fully to 50% (or 75% with the 100m spend) with a DFS completed on 3.5bill tonne JORC resource, and SIMEC advancing their new steel plant, HAV's value would have to sky rocket.= great

-They've left the door open for any other companies that want to offer a better deal before everything is signed.= great
-The alternative is to scratch around with no money for the next year or two hoping to find a better deal= not good.
-Specific comments by Gupta at the press release regarding copper as part of their plan=great.

Negatives

Basically mass dilution upwards of 50-75% depending on how much of it HAV accesses=not good
No increase on price that SIMEC has to pay for shares as projects advance=not good.

The big question:
Is the positive advancements in projects going to be worth the amount of dilution in share value?


Justhavinago