So compared to the number of soi before the capital raising we will end up with 33% more shares on issue and 11% of the new total of soi as 3.1 c options . There are also 4 c options that expire at the end of the year . The 3.1 c options will be tradable but the 4 c options have not been listed .
So we are having a large dilution but the money raised allows us to progress the Cooper Basin program towards first revenue next year . If the 4c options get into the money before they expire and Cervantes gets pushed into 2022 as I expect , that could avoid a possible CR to fund the Cervantes well .
There looks like a good growth path ahead and a discovery at Cervantes would be transformational. Hopefully once revenue comes in from gas sales it will help fund ongoing exploration .
A lot of unknowns and risk still but it seems the business is in much better shape than before the drilling of Valli 1 even if it is not reflected in the share price yet .
MEL Price at posting:
2.4¢ Sentiment: Buy Disclosure: Held
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