share lending works as security bond

Some SHs pointed out Management is not goold because of thr share lending agreement, this is not correct.

We know GNI actually can issue 5% placement to Zulu at 2.3c, 2.5c, but the board didnot, instead of lending 5% to Zulu--This is the first step the borad avoid a dilution for shareholders. Thumb up from me (Although I am not a holder)

Some SHs pointed out Zulu may dump the lending shares on the market,this is not correct as well.

To dump lending shares borrowed from the board to manipulate the SP obviously violate the ASX listing rule.

"Too obvious" means this guess is wrong, it is also not allowed by ASX.

In my opinion, the lending shares should work as security bond.

Because:

The finance will be provided by Zulu Capital (??Borrower??) by way of draw down facility at Global Nickel??selection. An initial AUD$12.5m has already been contracted and will be drawn on a rolling basis.

You know "at GNI's selection" may increase Zulu's capital risk--for example, if positive news push the SP to 10c+ , Zulu may have to pay 8c+, no choice. The 10m lending shares at 3c cost will work like an "average down facility" for Zulu to avoid the investment risk.

In whatever case, clearly Zulu should be the largest Shareholder, $25 million cash indicates full confidence and some secrets about GNI's asset which we donot know yet.

The followings are the possible reasons why Zulu invest:

1) Refer to mickyj777's post " email from andrew"

" Mt. Venn which sent Tasminex soaring to a market cap of approximately $200 million approximately 40 years ago. As such, my view is that share price weakness is a buying opportunity rather than anything else." (the project holds a prominent role in the history of Australia exploration.)


2) "Helix geologist Tony Martin says Helix originally went to Mt Venn looking for platinum group elements (platinum, palladium, rhodium and other stuff you've never heard of). Then Helix found Tasminex had explored only a small patch of ground at the southern end of the claims, amounting to less than 10 per cent of the total area and nowhere near the biggest gossans."

3) "Mt Venn is certainly worth a few holes because it must contain the largest undrilled gossans in WA"

4) Work at the area has also returned significant rock chip results including, amongst others, 8.3% Cu & 1.9% Ni. Mt Venn is considered highly prospective for gabbro complex hosted nickel-copper mineralisation and for ??Kambalda style?? mineralisation within komatiite flows related to the area??s gabbro margin intrusions