Very good post Chotto. They would have kept the Bergen deal if...

Very good post Chotto. They would have kept the Bergen deal if they had insecurity about cash flows.

In one of the phone calls BB told  @tony barber months ago that SKI want to delay the taking up of options till very last and he is not sure why that is the case. Also in Sep-October Tony or someone else spoke to BB and he got told that 3 month period starts from when SKI got the copy of BFS for review along with other banks and not from when it is released to ASX. However, in the announcement on 3rd Jan AUZ gave them extension till 20th Feb. Like take some extra time in case you change your mind.

So AUZ must have known from a long time ago that there is a very good chance that they will not accept the offer and cash would have to arranged some other way. Having said that cancelling the Bergen deal could have been a trick which Marcus played to increase share price hoping that it will rise to pre Bergen level of about 8 cents and that will make SKI decision easy or raising more funds cheaper.

Either way any CR will only be a very small one and with minimum dilution. Cash burn with all the Flemington drilling and Sconi drilling has stopped and they might stop the demo plant as well if needed.

All of the above is just my own opinion and reality could be very different. We just have to wait and watch.