Running discussion on SP, page-28592

Hey Mate,

I believe you may have just contradicted yourself. Maybe I'm wrong. AIMO.

Your post is below:-

More scaremongering from you re:dilution....what do you think AVZ are going to do, just issue more shares in a placement for funding.....you would either be extremely naive or are deliberately trying to be mischievous for you your own agenda.

For instance there can be prepayment with offtake and with the very solid financials from the DFS, the obvious one is debt funding with a banking institution. And as I have said before with the stellar financials, a guaranteed offtake(s) indicating the mine will be profitable, and a pay back period of only 1.5 years both parties, AVZ and the lenders would want to see AVZ mining ASAP so there would likely be very competitive terms(i.e interest rates) to achieve this outcome.

As Nigel Ferguson noted post the DFS:


“This week’s release of our highly positive Definitive Feasibility Study has
generated significant interestfrom awide range of investors and potential
financiers, andI am confident we will secure the necessary short term funding as
well as longer-term debt and equity financeon HIGHLY COMPETITIVE TERMS.”

Also AVZ have a staged approach, as the market and revenues dictate to avoid problems that WA inc had in their mine development....$275 million for a basic first stage to produce SC6 and then $545 million when you add a sulphate plant and so on; which mitigates funding pressures.

AIMO