Like you, I am definitely for this transaction to proceed else we will continue going around in circles. My only issue as that Focus have stated that the funds will largely "support" - note - "not achieve" Focus' growth to a 500,000oz per annum producer. How far away this is, we can only speculate, but it still could be years (say 3-5). That's reality.
In their announcement to the market, they earmarked exploration at Laverton, Coolgardie and TI as 3 benchmark uses for the cash. They also mentioned Nepean and threw in the good ole "accretive acquisition" as well. The only justifiable acquisition in my mind, would need to include a mill.
I feel that we will get some great SP growth if we can prove up reserves and resources to say 20M+ Oz, however, we won't have enough cash to get to 500,000oz per annum with this raising. That is my opinion.
I would personally like to see FML put forth, a detailed schedule of how the cash will be spent over the next 12 and 24 months. This is the type of information we need to move some people off the fence and even possibly reverse (either way), existing interim decisions people may have already made.
Again, I support this cash injection, but I do want to know exactly how much will be spent on each of their listed items and what is actually required to achieve 500,000oz per year, not just support their goal to reach 500,000oz per year.
have a great day.
FML Price at posting:
3.7¢ Sentiment: Buy Disclosure: Held
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