It's a $500k spend over the last 12 months
My read on Pernatty is the spend here should get them over the line rather than a last minute rush to spend $500k
If you look at the work done on Horse Well in the last 12 months they should have been close to the $500k spend already.
In terms of how much $$ they need for the next 12-18 months I've had a look at the numbers and come up with the following as a starting point
Pyramid Lake (Gypsum) - stated capex $1.2 million
Horse Well - $500k to move to 80% or drill the 3 proposed holes (go alone option) for an estimated spend of $900k
Salaries - $290k (NL 69k, AK 5k, MB 132k, AG 84k)
Carroway Corporate - $84k (a company associated with AK possibly allows them to not go too much above shareholder approved salary cap of $250k)
So $2 - $2.5 million probably required depending on approach adopted.
The proposed spp approach put a potential 1,378,144,729 shares in play once the price held over 1.3c, raising $2 million then another $4 million from the option conversion.
Assuming a discovery at Horse Well was worth say $50million this would equate to 3.6c per share
An equivalent raising for $2 million at 1c without any options gives them enough to move forward with all plans and keeps the register tight(er) with 864,250,637 shares.
On the same Horse Well discovery assumption ($50mil) this would equate to 5.7c a share. To get additional funds at this point management could raise the $4 million at 5c which would only add 80 million shares to the register.
A tighter register would send the message that management have shareholders interests at heart moving forward.
Management and option holders can buy on market if they need to top up there full priced shares (currently at 0.8c) which puts everyone vested in a much stronger position moving forward (yes even most option holders) and the company set up for growth rather than all upside being diluted away.
I really do hope shareholders best interests and a true alignment between shareholder and management interests occur with the plan B for raising funds now the spp is postponed.
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