Some things missing from your analysis - firstly, i thought NKP were quite clear on their proposed financing arrangments, and it would include dilution
"The merger would also be subject to NKWE successfully completing a debt/royalty financing to fund the proposed merger."
This screams Xstrata or a high profle sophisticated investor as defined under ASX rules taking a chunk.
Also ppls - dont discount a play from Angloplat somewhere along the line - this is their original acreage remember - they view this as being stolen from them. Once NKP have 74% of the project - they are sitting ducks to an Angloplat play.
The other influencing motivator lending support to a play that didnt include dilution is the recent unlisted options with an exercise price of $0.90c.
All these point towards an arrangement that dont involve dilution of NKP. The have $12m from Dewaldt, $10M from Xstrata - selling future product on a royalty basis as indicated is a much more sensible approach for all involved.
IGC Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
