Ann: Havilah Secures Funding of up to $100M from GFG Alliance, page-57

Looks like they left one guy out of the photo. Might explain why Giles wasn't looking too happy.




Anyway, I view this as being a pragmatic deal considering the utter dire situation the company finds itself in financially and a big de-risking event (the funding side at least).

Some talk about "massive dilution". Well, this is what massive dilution really looks like:

"FAR Limited (ASX: FAR) is pleased to announce a placement to institutional and sophisticated investors to raise approximately AU$45 million before expenses by issuing 818,854,544 million shares"

Total shares on issue is in FAR is now a whopping 6,280,387,002

Makes HAV look tame in comparison.

Also some discussion about GFG appointed directors and what it means for ordinary shareholders. There is an obligation for directors to act in the best interests of ALL shareholders, not just those who put them there.

So here we are, the company in 3 years time should have at least two DFS's and a PFS (who knows where Kalkaroo will be), so be in a strong position to bring at least 2 mines on line. Bearing in mind the ambitious growth plans of GFG and this quote from Gupta:

"This is a critical step. Without having a proper supply chain behind the steel plant there's no way we could commit to such a large undertaking," Mr Gupta said.

What I'd like to know is what the proposed production rates are. They mention they have targets for both projects in yesterday's announcement. Common sense suggests that free cashflow from both projects (but in particular from the iron ore) could be quite substantial and dividing that among the still relative few shares on issue, could well lead to substantial share price gains.

Still, these things don't happen overnight. The KDR story is testimony enough to that, that was 3 years in the making.