Ann: Successful $3M Placement & launch of SPP Offer, page-16

Andrew Worland provided a quick update just after the release of the announcement of the $3m placement, here. Several things of interest:

• they only have a couple of months to do all their analytical drilling at Springdale before the farmers will take back the land to start planting - I guess wheat (?) - and it will be September / October before they can access the paddocks again. AW is hopeful / confident they will get all the field work done in the next couple of months that they need to be able to deliver the feasibility study towards the end of the year.

• Even when they have their battery anode facility up and running they will continue to run the micronisation plant for any Springdale concentrate that is produced in excess of what the full-on battery anode facility can handle.

• AW said they were only after a smallish top-up to get them through to the end of this year. No talk of how they will raise the balance of the $12.5m they expect to need to get the micronisation plant into production.

• He said that if the SPP raises more than the intended $1m then they will allow that over-subscription to go through. From the annual report there are about 1,770 IG6 shareholders which means they are hoping to get on average $570 per shareholder. More realistically if 10% of shareholders were to take up the SPP offer at $5,000 each then the company will get their $1m from the SPP. Doesn't seem too much of a stretch but as we all know everyone seem fairly spooked by even the suggestion of risk these days. I wish AW and team every success with the SPP and beyond.