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3.6¢ queensland pacific metals limited

News: QPM UPDATE 1-GM to take equity stake in Australian mining company, page-8

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12/10/22

11:10

Post #: 64154581
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Originally posted by T.E.P.: ↑

For me, the key question is has this $69m USD investment from GM been done at the market cap level or the NPV level?

If the former, then that's a dilution of shares of ~47% (relative to a market cap of $235m).

If the latter, then that's a dilution of less than 10%.

I think the playbook QPM needs to enact from here is to move the market cap on this news (and the subsequent DFS), such that the remaining $300m of equity that needs to be raised can be done (and at low levels of dilution).

This $69m USD injection, plus $300m of new equity (eventually will need to be raised on market), plus debt of $700m, should get them to $1b in funds, which should hopefully cover the CAPEX bill (of which we don't exactly know what the total is yet, pending the DFS).

Overall, this is a great step forward, well done Stephen.

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I understand your concerns, but doesn't the following translate into GM owning LESS than 10% of QPM shares in the stated 'Investment Agreement' on page one at the bottom of the announcement:

In which case (quoting yourself) :
" If the latter, then that's a dilution of less than 10%."

QPM Price at posting: 17.5¢ Sentiment: Buy Disclosure: Held
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Last 3.6¢		Change 0.001(2.86%)		Mkt cap ! $90.76M

Open	High	Low	Value	Volume
3.5¢	3.7¢	3.5¢	$39.64K	1.102M

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No.	Vol.	Price($)
1	100000	3.6¢

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Price($)	Vol.	No.
3.7¢	520551	5

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No.	Vol.	Price($)
1	100000	0.036
3	1439717	0.035
3	435973	0.034
10	1210713	0.033
9	408437	0.032

Price($)	Vol.	No.
0.037	520551	5
0.038	846145	6
0.039	555721	5
0.040	431903	5
0.041	285001	4

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