RE: Dilution=funds8 Dec 2020 20:10
Hi Christo
It’s a very good point. Dilution does mean cash.
How much? Well, I can’t be too far off £2m.
That said, I personally believe that CM wanted us to get over the line of 50% equity before smashing into the IOCG, and given that we are now managing JV partner, it’ll be more feasible (from SA gov) to squirt some ADI funding into the mix.
Don’t forget we have a further dilution event accelerator which kicks in at vwap 4.5p which will convert 65m warrants at 3pence yielding a further £1.95m, so the dilution is already scheduled in, but will be enough to see us over the 75% spend threshold. The ADI funding will most likely not qualify as part of our spend towards that threshold in respect of ADN.
All in all, we are where we need to be. Funded, drilling, planning and forecasting.
I think the original agreed plan between LAM and ADN is to prove up that the one cubic metre of gold exists in the snake pit, so I’m 99% sure we are going for this first, seeing as the funding gives us that control and it’s so very much in reach.
There’s no doubt, the coming results will help us on that dilution journey for the next warrant acceleration, but after that point, we don’t currently have a prospectus/permission beyond the annual 20% permissible under main market. That said, 20% of £10m is an extra £2m so when we get there, it’s game on.
Structurally, and systemically, this business has been orchestrated to hit a SP of 4.5p. It’s just a matter of when.
I keep topping up occasionally, like today. I get a little itch in my nose every time, but haven’t passed out yet...it’s getting close though!
Good luck everyone.
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