For the 12 million equity AVB have announced that they are reviewing several term sheets inclusive of Metal & Royalty Streaming options.
Metal or Royalty Streaming options are basically a lender gives cash up front and then receives either a percentage of the processed metal or a royalty as payment for the loan.
This obviously doesn't dilute the shareholding directly and this is what AVB have said is their intention.
All good so far. Now the sticky bit. The Metal & Royalty Streaming options generally apply to a mine close to or in production. Now I have no doubt that we have very competent people that can argue our case that production will happen.
To do this we have to pass the due-diligence test. So as I read it there are still two stages to go to finance.
1. AVB selects one of the term sheets that suits (currently reviewing) 2. AVB provides satisfactory due diligence that suits the lender.
From the above, I wouldn't be surprised if AVB needs all of this quarter to secure the $12 million.
AVB Price at posting:
8.9¢ Sentiment: Buy Disclosure: Held
