The 25% amounts to A$4.83M at the current share price: (96,605,937 + 64,403,958) x 0.03, and hopefully more as the share price increases.
I wouldn't be surprised if this is a prudent back-up plan for management to be able to quickly get some cash to pay contractors to commence developing the Zeta decline, should there be any ongoing or unfavourable difficulties with the financing for the underground development.
From the announcement of 11 September 2014: "Total capex to first stope ore production of only US$5.9 million (occurs in Q3/FY15)". Q3 is now only one month away and I assume the nominated timing for development to first ore is to provide continuity of ore sources as Plutus open pit is depleted over the next 2-3 years.
Obviously, the development timings and funding sources will be clarified in Friday's anticpated announcement about a satisfactory outcome on raising capital.
DML Price at posting:
3.0¢ Sentiment: Hold Disclosure: Held
