just received phone call re this offer to...

just received phone call re this offer to shareholders.
https://www.classicminerals.com.au/downloads/announcements/clz_2021080201.pdf

below is my attempt at being autistic.... critical technical feedback welcome.

The SPP Offer allows Eligible Shareholders to subscribe for up to $30,000.00 worth of new Shares ...

The issue price of Shares to be issued under the SPP will be $ 0.0013 per Share

The issue price of the SPP Offer represents a 13.33% discount to the volume-weighted average
trading price of the Company's shares on the Australian Securities Exchange (ASX) during the 5
trading days immediately prior to the announcement date of the SPP Offer and is a 35% discount to
the closing price of the Company’s Shares on ASX on the last trading day immediately prior to the
announcement date of the SPP Offer

The Company seeks to raise up to $8.4 million net of costs through the SPP

page 2 sets out the funding, mostly for drilling programs @ Kat Gap, Lady Magdalene, Lady Ada & Matrix with
- $1.2M for site works
- $0.54M for "Exploration Staffing costs, transport, field supplies, rents & rates, database management, resource calculations and fuel costs"
these are modest expenditures to prepare the site for development.

There's been very little news on the Gekko gold processing plant post commissioning notice on 12/05/2021 and commencing delivery notice on 25/05/2021. I expect the $1.2M site works will provide for concrete, power, installation of the plant etc. (that said I was expecting less delay between the previous commencing since transport of pre-commissioned units should have been only days ex works) idk if I've missed something there.

The announcement on 30/06 "Infill RC drilling delivers more high grade gold intercepts" mentioned an old Scoping Study on p7 (ASX Announcement 2nd May 2017). That ASX announcement 'Forrestania Gold Project Scoping Study' was based on an open cut mining 1.9Mt of 1.95g/t from the Lady Magdalene & Lady Ada resources. Page 2 estimates the AISC @ A$1080-$1160/oz, NPV, cashflow/payback of 18-24 months with life of mine 2.5yrs. based on gold price of A$1700/oz.

The announcement on 10/06/20218:23 am AESTMining of Bulk Sample Approved' granted permission to mine 3,000 – 5000 tonnes (t) of ore at between 4 and 6g/t Au, expected yield between 350 and 1,000 contained ounces of gold (Au). will be a good opportunity to prove their recovery rates, true ASIC and produce some cashflow.

https://goldprice.org/gold-price-australia.html
https://www.marketindex.com.au/gold

@ todays price 1,814.30 USD/oz. depending on your interpretation of the current quantitative easing and gold price manipulation, there is ample upside in the gold price.

I haven't seen more recent feasability study or AISC estimates, the lack of updates on this front bothers me as prices for labor/materials/equipment have increased in the last 18 months.

TLDR: this has been a sleeper company with ongoing drilling to firm up resources, with the current gold market and Fed gov incentives to develop resources, this might be the conditions to turn into an active producer.

(I've been a bag holder since early/mid 2020, mixed thoughts about taking up some of this shareholder option)