Ann: Successful Completion of Share Purchase Plan to raise $1.5 m, page-12

Heeman, I'll write a proper post over the weekend if I get a chance, but a couple of quick points:

1. Yep, 65:35 is the split (35 equity, 65 debt) which is pretty good, and I think (from memory) our original scoping studies were done on the basis of 50:50 model. The quick conclusion from this is that the funders are happy with the bona-fides of the project, and more importantly the buyers (thank you ThyssenKrupp) to lend more debt than would have been their usual starting position.

2. Equity is a huge ask, but you are assuming we stay stagnant for now with the sp. Once we have a BFS, and a development decision is made, investment managers will be getting on board then, and sp will be significantly north of here. The sp is in the doldrums thanks to the wider market ructions for resources over the past year, but also because as a non-producer, there is still a fair bit of risk. Once the BFS is out, the mining application approved, and a few other boxes ticked, the risk is mostly taken out (apart from physical construction risk, which is less for graphite than other mines, because flotation and stuff is a very simple process), and at that stage, the sp heads much further north. In $dollar terms, we'll still need to raise $21m, but in % terms it will be much, much less dilution than now. At the development CR point, raising money won't be the problem from instos. They'll be falling overthemselves given the upside from the cashflow.

3. I wouln't keep powder dry for that (development funding) event. While it's likely that retail shareholders will get the opportunity to participate (like the SPP), the price is going to be a multiple of what it currently is. $10K invested in the sp now will be much better for you in the long run, than waiting around and putting $20K in when it comes to development finance time. Of course, there are still volatility risks, but I think the lows we recently hit, and the extremely strong support via instos for the CR, would indicate that sub 20 is not going to hang around much longer.