From yesterdays debt retirement announcement.At the end of Dec...

From yesterdays debt retirement announcement.



At the end of Dec 2020, Tranche B was USD8m + USD1.043 = USD9.043m @ 12.5% interest rate, so you can see why they were keen to eliminate this debt. There was no repayment of this facility in 1H 2021 CY, so the balance would have grown by 12.5%pa, for near enough 6 months.

Tranche A has an interest rate of 5.0%.

For arguments sake, lets say Tranche B was USD9.6m (AUD12.4m) plus the accelerated repayment of the final instalment of Tranche C for AUD7.5m, so you get close to the amount advised of AUD20.8 in this announcement. The difference is likely to be an early repayment against Tranche A.

It's worth noting that the announcement of debt retirement came a few minutes before the capital raise announcement. So it's entirely OK to claim the CR is for its stated purpose...but it is really a bit of a "pea and thimble" kind of argument, imo.

So effectively, part of this capital raise was to cover the Tranche A, B & C debt repayment. Out of the $50m to be raised, $12.4m (plus whatever amount of Tranche A was repaid, plus $7.5m of Tranche C) was replenishing the petty cash tin, and the balance is for exploration and other working capital requirements.

Anyway, onwards and upwards for AIS in the LT.