Ann: METALICITY BID FOR NEX METALS NOW UNCONDITIONAL, page-23

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sooly

835 Posts.

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06/12/21

23:58

Post #: 58114838
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Originally posted by mike999: ↑

Sools,

firstly, nice to have a constructive conversation.

There will be standard dilution clauses in the contract (I haven't seen this one but I have seen and been involved in plenty of other mining JVs over the years. It will be something like for every $1M they fail to contribute MCT will assume another 1% or so or something along those lines.)

Now that may not be that big a deal to NME holders, let MCT spend few million and end up at say 55/45 which in my opinion is not that big a deal in the scheme of things.

As to the alternative of doing a capital raise, I doubt very much they would have an issue raising in this market, the placement market is hot right now (I've been offerred five 708 raisings in the past 10 days alone, for in my opinion less attractive projects, and all have closed within 24 hours). The drilling is proving the project is exciting and in my opinion investor interest will be there. They would be smart to get it underwritten, regardless of cost.
The big question here is it will need a strong vote support as per the T.O.P orders from existing holders because MCT will obviously vote 22% against.

cheers
mike

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Cheers Mike appreciate the input, it appears from the uptake on the offer that NME holders concur with your thoughts, whilst 22% is a sizeable chunk its still a fair way off the mark required, lets hope a solution is found in a reasonable time frame and they can get cracking proving up the resource, love that the drill bit is doing its job just need everyone else doing their's,Cheers Sools.

MCT Price at posting: 0.9¢ Sentiment: Hold Disclosure: Held
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