Ann: CFE secures A$7.5m funding to fast-track Kipushi development, page-11

Some interesting points on this 'deal':

1. Magna gets a 4% 'commitment fee' on each draw-down - payable in shares;
2. Magna gets a $1.10 face value on the Con-notes - therefore for each $1, they get to convert for $1.10 (but there's no interest remember), plus they convert at a 15% discount to the VWAP... all up that is a 29% (4% commitment fee + 10% uplift on face value + 15% discount to VWAP on conversion) return that Magna will extract from retail investors;
   
3. Tranches 3 & 4 can be drawn down at milestones (i.e. publishing a JORC & the PFS) - both of which will prime for a P&D;
4. Magna can opt out of providing the funding if the liquidity in trading of CFE's shares goes below a threshold (not specified in the announcement);
5. Magna can opt out of providing funding if CFE's VWAP is less than $0.02 on any 5 trading days (i.e. they could opt out this next week if the sp doesn't move north soon).

All this points to Magna will get paid by the retail investors on each pump milestone and if Magna determines that there's too few fish for them to shoot in this particular barrel (i.e. lack of liquidity in CFE shares) then they don't have to put their capital at risk...

Also of concern is that the trading restrictions on Magna are set out in the announcement, but even if they were, those restrictions can be removed if CFE is in default or upon 'certain equity conditions' (also not defined in the announcement).

IMO, it is definitely buyer beware from here on especially if looking to purchase post any of the draw-downs!