This about Hawke’s Point from May last year around the time they took some of those 11.7cent placement shares.
Hawke’s Point Holdings L.P. Makes Investment in Capricorn Metals
https://www.businesswire.com/news/h...int-Holdings-L.P.-Investment-Capricorn-Metals
“We are very pleased to provide Capricorn with capital to both continue its development of the Karlawinda project and further explore its tenement package in the Pilbara,” said Scott Marsh, a portfolio manager at Hawke’s Point. “We look forward to continuing to support the company as it progresses Karlawinda through decision to mine.”
It says in the link above that “Hawke’s Point is owned by Tetragon Financial Group Limited.”
and it says that Tetragonal “is traded on Euronext in Amsterdam N.V. and on the Specialist Fund Segmentof the main market of the London Stock Exchange. For more information please visit the company’s website at www.tetragoninv.com.”
I can’t see Hawke’s Point being too happy with 11.4cents when they originally paid 11.7cents and their average is 9.4cents.
The only way they would accept this deal without a sweetener is if they have been given the heads up that debt financing is not on the cards at the moment. I’d say Hawke’s Point will likely contribute to the equity component of any mine finance deal judging by the statement made above, although they will run into the 20% ceiling so that is also problem for them as more equity will likely dilute their interest and there is nothing they can do about it short of a full takeover offer, which I doubt they would do as they are investors not miners.
So if they reject the RRL offer and financing goes ahead I’ll just make sure my average price stays below Hawke’s Point’s average and make sure that the proportion of the company I hold is not diluted by buying more shares when the raising comes along.
I think Hawke’s Point know what they are doing here. If they accept then there are still good gains from this level at 8.5cents. If they manage a sweeter then even better. If Hawke’s Point walk away then they must be pretty confident that funding will be sourced. My guess judging by the directors unanimous agreement to the deal is that Hawke’s Point have found themselves between a rock and a hard place. ie that they will try hard for a sweetener but end up accepting, so buying at this level is a good bet IMO if you want a quick 34% gain. Those of us who bought lower at 6cents and have lower averages will be looking even better if it plays out this way. Just my feeling of how this will play out so please DYOR and make up your own minds before buying. Esh
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