I am told by my mate its for the facilitator who brought in Zijin. They get a commission if the deal goes through. This would be Huashan Capital or would be associates of Huashan Capital
I know capital raising fees are done at 6% (well this is what I see when my broker discloses raising documents to me).
Instead of taking cash they are taking SCRIP or would I say options. To date Zijin has released $7m, so 6% fee would equate to $420,000 worth ... or in this case I see its 19.5m NKPO.
I am assuming that once the $13m is released then Huashan Capital will most likely make another 6% on this which is $780k. The last $1.9m placement to Zijin will also earn Huashan Capital another $114k. If these guys decide to take SCRIP then I would expect another Appendix 3B, or if they take cash then you will see it in the next Quarterly.
NKP Price at posting:
7.1¢ Sentiment: None Disclosure: Held