If PRH holders thought the initial share based offer from SLR was below par then how do we all feel now their share price has closed below $3 today.
I know of some major holders who were prepared to cut and run with the SLR offer in preference to backing a rescue package. They may be having second thoughts today.
My hope still remains for key long time and supportive shareholders(of means)to support an alternative proposal put forward by a new board and management. The fundamentals of this alternative course of action could revolve around two equity based financing steps.
Firstly is for a group of major shareholders to back a convertible notes issue (under terms at least equivalent the current SLR convertble notes). The size of this issue would cover all break costs associated with pulling out of the SLR deal, provide working capital and recommence an aggressive exploration program (primarily focussing on Kundip's gold resource). This would lead to a revised, more robust DFS supporting a plan to establish Kundip as the first production centre (not dissimilar to PRH's own revised strategy and what SLR have in mind also).
Secondly later this year progress to a capital raising via a SPP to underpin working capital and seeking of a major project funding package.
All would then be good and back on track under our own control.
PRH Price at posting:
1.9¢ Sentiment: Hold Disclosure: Held
