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Kluck - My guess is that it is either a typo or they simply intend to raise some of the money in Euro to fund their expenses in Germany. Frankly, they could just take out a currency option or convert some of the fund raise at spot at the time so it does seem a little curious to do a small slug in currency but I don't think there is any direct link to the Zinwald spin-off / IPO / funding exercise.
Bigger issue is that the amount being allocated to the ordinary / smaller shareholders is paltry but I guess that is the price of getting the institutions to underwrite a chunky placing. The problem for me is that we are asked to agree to give up our pre-emption rights blind without knowing how much is going to be needed in equity as opposed to any other 'financing sources' - although I accept the parties that will be favoured in any institutional placing are likely to include all those who have the muscle to carry Resolution 8 anyway. So we shall just have to hope that the BoD work hard to get what they can from non-equity/'other financing sources' and that the share price does not fall any further - in order to minimise the number of shares that need to be issued. Thats the reality of being a small PI in a shark pool.
But even in the worst case of 692m shares max AND only 50% of Sonora for BCN shareholders I reckon that there is still some value here for investors getting in at around the current share price.
"The Company also continues to explore other avenues of funding. The share headroom sought will allow the Company to raise any additional funding from the equity market to support the construction of the Sonora Lithium Project. The Company recognises the importance of giving its existing shareholders the opportunity to participate in any fund-raising and intends to include an open offer element of up to €8 million in conjunction with any primary placing. "
I find the above para confusing.
The offer to existing shareholders is apparently for the listing of Zinnwald as the offer is in EURO Does this suggest that the listing of Zinnwald will happen before the placing for concluding the finance for the Sonora project and that the net proceeds will be used for part of the additional funds needed and thus less dilution ? How else will the existing share holders participate in the fund raising since the rights to be offered are for Zinnwald?
"The Company recognises the importance of giving its existing shareholders the opportunity to participate in any fund-raising"
Your views will be appreciated