Latest News

Local News

$100 Million Funding Proposal for Havilah

Capture

GFG Alliance have proposed a $100 million funding project with Havilah Resources, a timely announcement with the mining company’s Extraordinary General Meeting (EGM) planned for next month. 

Havilah plan to secure the strategic partnership at the meeting, as well as a three-year working program fully funded and expanded scope of work with the addition of iron ore. 

Voting for the EGM commenced on Saturday with a cut off date of September 10, two days before the meeting. 

Independent directors recommend a vote in favour of the transaction however the non-independent director, Dr Chris Giles, makes no recommendation on the grounds that the transaction is not fair.

It’s important to note that an opinion of “not fair” does not mean it is unfair and even with the shares GFG will not secure many of the advantages of control.

GFG’s expected 51% shareholding is subject to a number of conditions and the maximum approved shareholding is 61% under the transaction.

The investment from GFG would give shareholders the opportunity to participate in the rights issue at a discount as well as increased market capitalisation which may increase the market presence of Havilah.

However, an independent expert thinks the presence of a significant shareholder like GFG may reduce the attractiveness of Havilah’s shares to potential investors.

Photo: Provided