Ann: Havilah Secures Funding of up to $100M from GFG Alliance, page-66

HAV has been a slow burn joke since at least 2009.

Lets break it down.

Portia - nice money spinner. Then flogged for peanuts. Golf claps all round.

Kalkaroo - huge Cu deposit. Sitting in the ground. No movement on it for years. Studies. Thumbs twiddled. THe mining boom sails past in it's entirety, and nothing is done.

Muturoo - metallurgically complicated Cu-Co pyrite deposit. Just in the past few months, after owning this for over a decade, we find out that their latest plan involves...extensional drilling. Really. It's taken 15+ years to figure out it needs to be bigger?
COB spends a few hundred grand on Pyrite Hill / Railway / Big Hill on pyromet testing. Suddenly a deposit known since the 1980's as a refractory low-grade dog of a pyrite deposit is under DFS and (depending on Co prices) looks like it might be a goer. What the hell was Havilah doing with Muturoo all this time, playing pocket hockey on the back seat of the bus?

Maldorky / Grants Basin - suddenly a whiff of something useful to a clapped out iron ore smelter in SA which is struggling to extend its own mine life and prospects. 3 GT of upgradeable iron mineralisation, billions of bucks in the ground. And, as per Portia, a stupid deal.

But lets break it down further. GMG is proposing to buy 51% of EVERYTHING for $50M cash. This means all the billions of dollars of copper and cobalt and gold and silver, plus all the iron.

The board of directors have somehow decided that allowing GMG to apply for shares pre-sold at prices fixed 30th April 2019, representing up to 51% of the company, with an step-in right on any other future capital raising, and the money to be spent entirely on the iron ore DFS, is a great deal.

GMG is paying for the iron ore DFS and getting a controlling interest plus 51% of the copper, cobalt and precious metal rights of all the other tenements, for free. Plus it can block or take up shortfalls as the underwriter of any future capital raisings, to maintain or even increase its stake in the case of under-subscribed SPP's.

My question is - if GMG wanted control over the iron ore, why didn't HAV just make them buy in to 80% of the project on a JV basis as per usual? Why didn't they sell 49% of the company for even $25M, and allow a non-dilution clause? Why didn't they just sell the iron ore project for $50M in cold folding today, and retain a royalty?

The fact is, the Directors are hardly putting shareholders interests first. As soon as someone flashes a bunch of pineapples or mawsons at them, they fold.

But it's absolutely clear this is a good deal insofar as leaving the directors in control won't solve anything. If a startup like COB which listed a few years ago is stepping in to provide you with technology on your own projects...you've got half a clue and less of a chance of making any project go.

So, i guess, be happy you might get bought out for 5c a share when GMG deslists HAV.