TLG Ann: Aero Lithium Project Update - 12th Oct 2023, 8:19am

[annb0t]

TLG Ann: Aero Lithium Project Update
Price Sensitive: Y
Date: 12th Oct 2023, 8:19am

>>> Read announcement: Google: TLG Market Announcements

 

[Semmel]

Very nice, hope the drilling will give us a nice body of lithium

But how is this a price sensitive Ann? A bit of lithium is certainly nice, like salt in the soup, but it doesn't really add to the calories...

 

[manny100]

Talga must have some confidence as they claim they are in early discussions with potential partners. If this comes off as holders would like it would put a booster under the SP.
I expect a CR in the coming months (November/Dec?) as at June'23 there was only 3.75 quarters of cash. Probably only need $30/40 mill so will not be overly dilutive. Probably fund some drilling from these proceeds.
Communication frequency with holders is often associated with coming CR's. We have seen an uptick recently.
If there is an SPP last time we had a 15% discount.

 

[curiousmagpie]

Clock will be ticking for a CR from the end of October, as shares for the last SPP were issued 28/10/22. So could happen any time after 28/10/23.

Also because the placement in Feb was 7.7% of SOI it means a max of ~26m shares (7.3% SOI) for a placement without a shareholder vote (I think?)

It won't be much if anything over $1 the way things are going. Best case is appeals are dismissed in November and offtakes and funding all follow before any raise. Not holding my breath though.

 

[Semmel]

Yeah, also expect a capital raise soon. $1 sounds about right.

 

[TentCity]

Clock will be ticking for a CR from the end of October, as shares for the last SPP were issued 28/10/22. So could happen any time after 28/10/23.

Also because the placement in Feb was 7.7% of SOI it means a max of ~26m shares (7.3% SOI) for a placement without a shareholder vote (I think?)

It won't be much if anything over $1 the way things are going. Best case is appeals are dismissed in November and offtakes and funding all follow before any raise. Not holding my breath though.

Also scope to fit in a Talnode-Si update in there before a potential cap raise. Hopefully one that entails the announcement of a refinery site, offtake partner and non-dilutive funding to really move the needle.

If the mine permit is approved late Oct/early Nov via the Supreme Court, there is also the possibility for MT to finalise the debt package of other financiers alongside the EIB. Also, there is the remote possibility that the mystery equity finance strategic partner could pop up once the permit issue is resolved.

As you say clock is ticking, so no guarantee any of the above will materialise before the potential raise. I will continue to sit tight and see what unfolds.

 

[teilenswert]

I do not expect a capital raise at the current level. My wishful scenario:

• Permits by the end of November (assuming a 4-week final review by Supreme Court).
• (conditional) Offtake Agreements immediately afterwards
• Clarity regarding the loans by EIB and bank consortium before Christmas
• Cap. raise > 2 AUD or a strategic investment

What would speak in favor of a capital increase already now:

• Provision for the event that the market continues to develop negatively and the achievement of the above milestones does not have a significant positive impact on the share price.
• Have capital available at an earlier stage to order long lead items

If MT raises capital in the next weeks, then I would find it charming to issue new shares for A$1.50 linked with share options that can be converted for A$2 by the end of 2025...

I don't think we will hear any relevant news regarding Talnode-Si in the short term, and I don't really know (to return to the core of this thread) what to think about the advances regarding possible lithium findings. At first glance, I don't see high chances of significant resources that can be extracted profitably, but I hope Talga has enough lithium know-how to better assess this and prove me wrong.