I'd be happy with a CR of $100M.Shareholders can originally...

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11/06/21

12:12

Post #: 53791301
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Originally posted by bigal36: ↑

Some shareholders clearly seem very worried about a likely large Capital Raising.

I actually look at the Capital Raising as a positive even if it is carried out at say a 20% discount to the current share price.
If this does happen it will very likely mean the mining licence will have been approved, they will have other debt funding approved, other partnerships/deals will likely be in place and the board will have given the green light to develop the mine.
I'd much rather see that than nothing happen for two more years and the current cash just getting dwindled away in overheads.

Any drop in the share price due to the CR will be more than offset with the excitement of the mine being developed and the share price will very quickly be a lot higher than it currently is.

For me the only bad outcome is if they do a small CR to just fund overheads for the next 12 months as that would send a signal to the market that things are not good.

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I'd be happy with a CR of $100M.

Shareholders can originally apply for +20% of their current holding, and if not fully subscribed (which it wouldn't be) further applications taken and scaled accordingly. Top 20 would have to subscribe to keep their %age holding..

Would put $100M in the bank and just watch the financiers scramble for signatures and all the off-takes come out of the woodwork.....

I can dream can't I?
TC.

AVZ Price at posting: 15.8¢ Sentiment: Buy Disclosure: Held
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