full dundee report, page-16

The additional capital was raised under the premise that the DFS would be finished and thus allow upside before another raising. As part of the financing Sentient have become insiders and in theory are restricted in what they can do to strengthen their position at the expense of other holders. So if it was shown they spent $25 million without releasing information that might result in an upside they would be open to challenge. Its hard to argue there isnt some information that could have been released.

The annual meeting vote will likely include the terms of financing; of note is that the voting terms seem to be running very, very late. In other words there is probably some serious sheep trading going on between management and institutional holders. I would guess that the institutional holders are either agreeing to participate and/or set terms. The biggest risk is probably that the North American shareholder block might try to use broker connections and sophisticated/accredited investor rules to lock out some holders in a very dilutive raising. But that would be risky as they dont really understand the economic makeup of their current shareholder base and that base could change dramatically if a raising was announced.

All that said If they wanted to fold the company they could probably have done it in May. Sentient is big but I dont think they want to take on all the risk and alienate a hard fought institutional base in the process.

As a rough rule if you trust the recent research report you can run your own scenarios on $200m profit on raisings at various prices. If a power solution comes online I would imagine the next resource release will only improve the figures.