ACB is running out of cash and needs another capital raise if the deal is not passed. The dilution will be huge. Try to think about how long it will take to get the DFS and finance ready for the project. We do have a big uranium mine but the grade is low. It would need a substantial amount of capital to get the project online. No banks will lend you the money in a not so cleared market. Lotus on the other hand has a mine that is ready to go pending offtake agreements signed. It would generate cash to fund the ACB project. If you ask me, I support the deal because I hate uncertainties.
Both Macquarie and MM asset management are large shareholders of ACB and LOT. I guess they are holding the shares on behalf of their clients. Please correct me if I'm wrong
ACB Price at posting:
6.3¢ Sentiment: None Disclosure: Held
