Sorry Hottin, I think the rights issue to which you refer closed in October and the shortfall placed in early November.
Where I understand CAP is currently at is that they have recently completed their PFS which was positive, have high demand for their product (supported by letters of intent). Whilst there is currently no capital raising going on, CAP is looking to how it will fund the BFS.
Bullet points below are from MD presentation at AGM
Offtake demand for Hawsons Supergrade® product is strong across several markets
• Discussions commenced with leading project finance banks, initial feedback on customer quality and project metrics is encouraging
• Bankable feasibility study (BFS) funding sought ~A$25-30m
• Engaged with multiple third parties capable of substantially funding the BFS
• These parties are undertaking pre-transaction due diligence, and therefore the nature of any transaction that may possibly result is uncertain
Those that have signed a letter of intent for 1+Mtpa at say $80/t are going to spend $80M per year. They may be willing to provide a couple of million each to fund BFS in exchange for confirmed supply. Alternatively, purchaser or Arrium might like good source of magnetite for pallet plant with excess capacity. Or there may be a future capital raising. Who knows what the future holds, but I think the upside is worth the risk.
Re your other post. Yes, CAP is a very long way from production - but if we were closer to production the market cap would be more than $20M.
The usual development hurdles or port, rail, water, power and native title do not exist for CAP. The only significant hurdle is funding for development. I believe this will be solved. I believe this will result in dilution - either through issue of shares or sell down of CAP's share in the project such that existing shareholders will end up with 10% to 20% of 10Mtpa at margin of $40/t per PFS. And that is why I hold CAP.
For those who wish to learn more, read PFS announcement on 28 July 2017
