RE: Now picture this, we are X months down the track, have done some work, but a long way off DFS. GFG/SIMEC decides to stop funding because HAV missed a milestone. They have security over iron and copper assets,
Could be wrong but my understanding is that once HAV has issued shares to SIMEC for the funds they have given to HAV, at that point SIMEC no longer have security over the assets because the security was for the X dollars they gave over. Once the shares are issued they are no longer owed anything from HAV and have no loan to call on.
If they do not like the progress from the project they can not give the next tranche of money. But even at that point if HAV was to run out of money HAV owes nothing to SIMEC and so there is no loan and no security that SIMEC can call in.
As I said, I could be wrong. Cheers Justhavinago
HAV Price at posting:
13.5¢ Sentiment: Hold Disclosure: Held
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