placement , financing pretty much sown up

HER have just announced a placement through Euroz of $126 million at $1.05 per share.

Macquarie have also given them an intent to provide $30 milion financing through a convertible facility, and $20M finace is in advanced negotiation with smelters/trading groups.

The Euroz placement is conditional on the macquarie/smelter/trading group finance being provided, which is prety much a certainty.

Personally Im a bit nonplussed with the approach taken...would have preferred more debt to equity, around 70 % debt, 30% equity imo. However given country risk that was probably a little optimistic.

Regardless, the key obstacle of obtaining financing seems to have been jumped and this removes the biggest uncertainty surrounding development of the project.

Will be interesting to see how the market reacts to the large equity issue. I would expect there will be some disappointed shareholders that may sell due to dilution. I personally as disappointed, however the potential profit from the project is so huge, and the potential profit from development of lae jahe as well, is enough for me to retain my holding.

I note JML took a similar approach which caused me to sell, yet the SP went up substantially soon after...so perhaps the market will take a similar view of what is an excellent project with immense long term potential in terms of finding more incredibly high grade resources.

Cdchi1