'Walter Richards negotiating with SIMEC Mining does NOT inspire...

'Walter Richards negotiating with SIMEC Mining does NOT inspire confidence in me.'

HAV’s current leadership has signed off on a number of dilutive deals, some with a capital component e.g. Bergen, Investec.

Could the ‘deal structure’ with SIMEC include a capital component?

ASX Listing Rule 7.1 limits HAV's capital raising to 15% of capital. However:

'7.2 [ASX Listing] Rule 7.1 and rule 7.1A do not apply in any of the following cases

Exception 15
An issue of +securities under a +security purchase plan, excluding an issue to the plan’s underwriters. Exception 15 is only available once in any 12 month period and if both of the following apply:
• The number of +securities to be issued is not greater than 30% of the number of fully paid +ordinary securities already on issue.
• The issue price of the +securities is at least 80% of the +volume weighted average market price for +securities in that +class, calculated over the last 5days on which sales in the +securities were recorded, either before the day on which the issue was announced or before the day on which the issue was made.'

Would that allow HAV to place up to 15% (33M) with SIMEC / Another and then do a SPP with remaining shareholders?

If so, SIMEC / Another would need to pay a significant premium on any placement. Try buying 33M shares on-market and see what that does to the SP.

A precedent has been set in September 2011 when 'MMG agreed to take a placement of 4,000,000 Havilah shares at an issue price of $1.25, raising $5,000,000.' Source: ASX release 6/9/11. The prevailing SP was ~ 50c.

Dr Giles is the only surviving member of the HAV leadership team that negotiated that placement with MMG. Those were the days, eh Dr Giles? It must hurt to be down millions of dollars on your investment. Regretting your decision to back your 'mates' yet? After all, you were the decisive vote. They keep racking it up on the Investec credit card while the share price of your substantial holding sits at 4 year lows.

FWIW $1.25 ps implies a valuation of $273M (undiluted; $304M diluted), a steep discount to various valuations of HAV's existing JORC resources.

IMO any placement (of up to 33M shares) to SIMEC/ Another should be north of the $1.25 ps that MMG paid. However given the track record of HAV’s current leadership we shouldn't hold our breath.

DYOR