I'm not too sure about that rookie, but the difference in the...

I'm not too sure about that rookie, but the difference in the deals each company managed to secure is mind blowing. TMT management really showed not only me, but the entire market something here. I honestly didn't think they had it in them, but as I've said from Day 1, I'm happy to admit when I'm wrong. It's almost embarrassing, but let me try to compare these two cap raisings.

One company used a little firm in Perth and gave them an almost 40% discount when factoring in the FREE option. Was anyone in the building capable of negotiating just a 15/20% discount on the share price? Nah, let's give them an option as well valued (at the time) at 1c (I think Jimmy Rees should do a skit on this) Oh, I’m sorry I forgot, I'm not including the 25,000,000 million options given out ABOVE the 6% fee. Someone try to explain that one. Wish I had mates like that. When the company hired 1800 they not only knew exactly where the shares would likely end up, but if they didn't, they could have spent 5 minutes looking back about 12 months prior and see what happened the last time they used this company. Fool me once shame on you, fool me twice shame on me. Oh and AVL shareholder could probably say the same thing after being told that last cap raising would give the company the funds needed to see it through to the BFS, which has been promised in a matter of weeks, but 2.5c and an option was decided better to take now I presume.

On the other hand, the company next door, who if you listen to certain individuals has a THIRD of the deposit, goes out and secures just one very solid group out of Denver who actually want to hold the shares, and all they needed to do is give them a roughly 10% discount. No options, no sweeteners, just a solid fair deal to get on board. And guess what happened to the share price?? It went UP, not down 40%. Throw in the fact that they also included holders in the deal and you’ve got a very smart, tidy way to raise $20 million.

Not only is our neighbour now loaded with cash and a real player on the register, but lenders will be sure to take notice of how that lot operate. I still am not sure they’ll be the first to get into production, as like I said I believe both companies will be bought out and the project turned private, but kudos where kudos is due on this one! It makes you wonder who would be able to secure a better deal for the projects if indeed a takeover bid was put in.