Ann: Share Purchase Plan to Raise $25 million, page-189

One aspect of this cap raise that most seem to be overlooking is the size. We have a SPP for $25M.

Virtually all SPPs are fairly low usually $5-10M, even looking at the current WAF one, they are raising $126M from instos and sophs and $10M via SPP.

Even our original SPP last year was for $6M with the instos and sophs $64M. (oversubscriptions took it higher)

A $25M SPP by itself is very large in the scheme of SPPs from junior companies, I'm not aware of any larger than this (please let me know of any larger ones).

How confident must management be that they can get this SPP over the line, as they have 'the market' now believing we need this $25M for business purposes, so if it didn't succeed then we would probably be sold down.

It's the fickleness of small shareholders being the reason why companies do large raise like WAF is doing, over 90% to instos and sophs, a pittance for the long term small holders. The obvious reason being that if the SP is below the SPP price around the closing date small holders don't participate, but if well above small holders flood the registry with cash.

My suspicion is that management/BOD here have very great confidence in the Share Price being well above the 58c level by the time the offer closes. Otherwise they wouldn't be offering $25M via SPP. I mentioned yesterday that the quarterly not being released yet, despite all the info we have is very telling.

IMHO I think the quarterly is going to be a very good one, in terms of outlook for both Gold production and events happening with Goulamina. I think a lot of posters have been taking this cap raise the wrong way and have not thought about it clearly. It's looking like a reward to long term small holders, giving them access to a larger holding at a decent price, before the SP takes off much higher.

I mean why risk fickle shareholders not taking up a very large SPP, unless extremely confident of a much higher SP by take up time for the offer?? If management/BOD are very confident of the price being higher by mid November, then isn't it almost like free money for buying anywhere near the SPP price and when whatever news comes out that will push the SP significantly higher, like ~20% higher?? There must surely be something that will drive the SP much higher in the short term, guesses??

My guesses, higher forecast Gold production for Dec quarter, great Gold recovery and production numbers for October, Ganfeng cash into escrow, upgraded DFS early release (obviously being very positive). These being known unknowns.

How about unknown, unknowns, like a new area of Gold tenements, a deal with another gold company in West Africa, some type of lithium deal (buying Kodal resource by JV?), new larger lithium tenements that already have some prospectivity for lithium? An early FID for the JV??

Any other suggestions comments??