HIGHLIGHTS •Fully Underwritten Entitlement issue on the basis of 1 New Share for every 16 Shares held to raise gross proceeds of AUD$1.65m at an Issue Price of $0.042 per Share •Offer includes 1 free attaching option for every 1 share subscribed, exercisable at $0.084 within 3 years from the date of issue•Fully Underwritten by Lazarus Corporate Finance Pty Ltd •Major shareholder, the Copulos Group has committed to apply for its full entitlement (approximately 22.3% of the Company being AUD$0.365 million) in the Offer, a strong show of support from the Company’s largest shareholder •Funds raised from the Offer will be used for progressing the POSCO Strategic Alliance & Development MOU, progressing the process on reaching an accord on the Tanzanian Government’s 16% Free Carry Interest and Working Capital The Company intends to use the funds raised from the Offer as follows: Expenses of the Offer $150,000 Mahenge Graphite Project inclusive of progressing the process on reaching an accord regarding the Tanzanian Government’s 16% Free Carry Interest $200,000 Progressing the POSCO Strategic Alliance & Development MOU$100,000 Working capital$1,200,000 Total$1,650,000
My thoughts are that we obviously needed to get some $ from somewhere to keep going and do that soon. This might take a bit of pressure off management accepting a lowball offer just to get some cash in the bank to keep the doors open. However, this isn't going to help the SP short term and what POSCO have to potentially pay if they like what they see during their 3 months due diligence. I'll be taking my entitlement at .042cps
BKT Price at posting:
4.8¢ Sentiment: Buy Disclosure: Held
