Yeah in an ideal world they would have raised higher, but in the...

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    Yeah in an ideal world they would have raised higher, but in the entire scheme of things it's still above the original list price and only increases shares on issue by approx 20%.

    This capital gives them the opportunity to properly test these prospects now and potentially massively increase our resource. We know there is graphite there, there have been significant drill intercepts from limited historical drilling. We should have good visibility on the future of the company by q123. The fundamentals of graphite are also potentially the most attractive of any commodity in the world right now, the growth forecasts are truly massive. Also having that resource in a place like SA, with a renewable grid, all the infrastructure nearby and a relatively reliable regulatory framework makes it a very attractive location to battery/anode manufacturers.

    If this drilling is successful the price of this raise will be irrelevant.

    The kaolin/REE resource, even though i think it is secondary to graphite, you look at the exploration target, that is a similar resource than what ADN have i believe, with the potential for REE credit. I have no concept of the relative quality of the resource, but that's a $150m market cap company. So lets backfill the drilling at Caralue, prove up that resource, which is not that costly, and then maybe we sell, take a free carry, spinoff etc could be effectively be the capital raise (without the capital raise) to progress the graphite infrastructure.

    Also don't really get the comparison with RNU, the two companies although operating in same/similar commodities in same region are at completely different stages. RNU is a $500m market cap ready to progress to material operation, which is very exciting, ITM is only a $30m market cap but with the potential to have a very big resource. Personally I think it would be better for both if both are successful, and would be massively better for SA/Aus. The growth volumes are huge, so no issue with customer demand, but by having two large players you get efficiencies in infrastructure, you get more confidence from battery anode manufacturers participating in the region, and you increase the opportunity for downstream opportunities.

    Personally i think it would be awesome for both to be successful, for a state like SA it would be massive and along with the growth in copper, provide the foundation for prosperity in the state for decades to come.


 
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