AUZ 0.00% 1.1¢ australian mines limited

Ann: AUZ launches underwritten Share Purchase Plan, page-264

  1. 331 Posts.
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    I am VERY POSITIVE on todays AUZ announcement ‘AustraliaMines Launches Underwritten Share Purchase Plan’. Perhaps it just my over optimistic nature ormy rose tinted spectacles.

    I suggest we all read and reread the announcement issued today 'AustralianMines Launches Underwritten Share Purchase Plan' again and AssumePositive Intent. I think people could be missing something here.

    This is an unusual Share Purchase Plan (Credit Raise)

    Note the share price for the issue if you decide to take it up will be basedon a 20% discount to the Volume Weighted Average Price (VWAP)trading price over the 5 trading days BEFORE the DATE OF ISSUE of the NEWSHARES.

    We need to decide if we subscribe to our shares up to A$15,000 each byClosing date of 5pm on 5 July 2019

    The date of issue of new shares as you can see below is Monday 15 July 2019- so the issue price will be based 20% of the VWAP on trading price Monday July8 through Friday July 12 2019.

    I guess the question is what well 'telegraphed' and company advised eventsdo we expect before the date of 5th July when we have to decideif we wish to subscribe to our new shares . Perhaps

    - The revised/optimised BankableFinancial Study (no more trucking of ore from Kokomo to the plant at Greenvale60kms away (should have some positive impact on CAPEX and OPEX) Plus muchbetter ore grades for Nickel and Cobalt particularly at Lucknow allowing AUZ the opportunity to ‘cherrypick ‘ the better grades of Nickel and Cobalt from Lucknow.(i.e maybe 2 pits atLucknow – one standard ores and one best ores ).

    - NAIF funding recently well 'telegraphed' as very likely to be granted by both Anastansia Palaszczuk Premier of Queensland and Melinda Cilento CEO Committee of Economic Development for Australia .

    - The Long Form Off Take Agreement for SKI for the 7 years 100% fixed off take plus 6 years option for Sconi Nickel and Cobalt and they may also be interested in our Scandium.

    - The FundingPackage advised as likely to be completed by end of June as advised by AUZmanagement itself

    So we have an unusual Share Purchase Plan for a Credit Raise announced today that most keen AUZ watchers suspect is not totally necessary from a funding perspective - we were told monies from the ast raise would last up to between Sept and Dec this year.

    The Share Option Plan for shareholders of record on 11 June 2019 , which is good to stop the down rampers now trying to board the departing train.

    Time will tell; however, I see this as the company trying to reward its long suffering small shareholders who have until the 5 July to deicide, hopefully after the above announcements, if they wish to invest more money in the company.

    So stay optimistic and assume positive intent and lets see what news transpires from the company between today and 5th July when we need to make up our minds if we wish to participate in the Share Purchase Plan or not.

    My guess is the above expected news will all be out by end of June and the share price will be quite a bit higher than it is today.

    Am I totally happy with the company NO – the Bergen deal was a disaster and shafted regular long term shareholders. I would like whoever was responsible for the Bergen deal and what was the ultimate cost to the company. Whoever was responsible for the Bergen deal should to be named and fall on their sword.
    I also believe the BOD needs a revamp and strengthening as we move from a small company to hopefully building the Sconi mine and production. To me I question whether we need to 2 of 5 Board Members Michael Ramsden Non Exec Chairman and Dominic Marinelli Non Executive Director who both work for Terrain Capital. This is why I think debacles like Bergen can occur.

    However the addition of Marcus Hughes from FMG seems to have bought much better forward thinking on finance, fund raising (offer Credit Raises to shareholders first ) and compliance – no more social media is a good thing,– it just leads to trouble with the ASX and less overly optimistic timelines . Using Patersons to handle this Underwritten Sahre Purchase Plan is also a good move.

    The macro situation of EV’s and Batteries now 76 battery plants build or committed to continues to grow better and potential China tariffs will further help investments in Battery minerals in politically and rule of law safe Australia. Sconi will indeed be mined.

    So don’t lose heart, IMHO our shares will in the future be worth a lot more than they are today and for even the doubters they are at least worth hanging onto for the next 30 days to see what news is announced.

    Stay optimistic and assume positive intent. GLTA Thai

    https://hotcopper.com.au/data/attachments/1592/1592639-9cb281ec41948f112666ad953b2c6027.jpg


    https://hotcopper.com.au/data/attachments/1592/1592638-949f209b9912992f4cf25f7ebd9e004f.jpg

 
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