the options being granted to the bankers are exercisable at 0.105c - so $7.5m into PNA's coffers for the initial tranche if/when it gets exercised. the 2nd conditional tranche is also linked to a % above market price - eg if PNA is $1.00 at 31 July AND the facility is still required, the 75m options get issued at $1.10 strike price - so if/when they are exercised, another $82.5m into PNA's coffers.
ok this will be an overhang on the stock, but will aid liquidity in the long run. Maybe the 1.5b shares then on issue is getting high, but it seems to me that the management of this company are very astute. actual annual production of 65-80t of cu, 100,000+ oz pf gold plus growth options and negotiated banker support with others wanting to buy in is not bad for a company with market cap of $200m.
I was lucky to average down by doubling my holding at 0.088c last week, and am expecting another 5-10 bagger on PNA - who said the soufle doesnt rise twice?
PNA Price at posting:
16.6¢ Sentiment: LT Buy Disclosure: Held
