The $20m capital raise

The Cu price and equity markets weakening is not good for this house of cards.

In terms of the immediate $20m raise required by the company:

1. It's hard to see how a royalty can be supported by the project so that can most likely be ruled out;
2. all the options are well out of the money so the potential exercise of these is a pipe dream;
3. asset sales might generate a few dollars but not $20m.

So it looks like it's going to need to be attempted in full (or close thereto) as an equity issue, which will blow the capital structure to pieces.

With the share price at 2.9c they'll be lucky to get it done at 2.5c - so assuming they can then that will lift the number of shares out from ~1.5 billion to 2.3 billion+ and they need to set up Metals X with a right to convert its $36m note into another 1.2 billion shares+.

Massively dilutive to shareholders and with an effective 3.5 billion+ shares on issue post the $20m raise and $40m of secured debt then out to Glencore it's going to present as a very weak capital structure - which makes me wonder how they'll get the subscriber interest in the necessary $20m issue.