Key Notes from Proactive Interview re. 18 Nov $16m USD Fundraise - Nov 22 2021

[DipSard]

Proactive Interview re. 18 Nov $16m USD Fundraise - Nov 22 2021

Presentation: https://www.youtube.com/watch?v=lMH_XPc ... WL&index=1

*Talk us through firstly, how the raise was structured?
- Hopefully people understand, we’ve been talking around bringing more institutions into the share register
- Had an opportunity around engagement from the last half of this year to bring a few in
- By the time the bid was launched, we had commitments around that institutional money
- Originally were looking to raise around $10m but wanted to give an opportunity to retail holders to participate, so opened up to Primary Bid, also had retail focused SI Capital join in and some other retail brokers contacted us and put in bids
- Did try to honour some of that money and hopefully people appreciate that we extended out to Primary Bid and some of these other processes and channels to the market
- Know we can’t reach everyone but we did try to create different channels to many of our existing shareholders as possible
- Also worth mentioning, there was no exclusivity with Primary Bid, were able to take retail offers from other primary brokers as well.

*From my understanding, there were suggestions that GGP were fully funded for the foreseeable future, so was that not the case?
- For Havieron, people are right to understand we have the funding in place, have that US Dollar $50m facility, $20m is drawn, $30m is available for us, continues to be the case
- Having said that, one of the consistent narratives we’ve had has been to continue to invest in the drill bit and look to continue to drive exploration
- In that respect, we don’t want to be diverting funds from Hav (Havieron) into that broader field exploration campaign and indeed to some extent we have some restrictions around that money, it’s really meant for Hav
- This gives us a cash balance that allows us to pursue those exploration campaigns, to continue to look for another Hav in the Paterson, to get into Ernest Giles and also put some time and energy into those Panorama and Bromus projects
- Worthwhile reminding people we had a cash balance of $4m prior to this raise, it was a reasonably measured amount of funding
- Currently finalising a budget for our Calendar Year 2022 exploration campaign and want to ensure we have sufficient funds to execute that
- And if there’s a potential on top of this to expedite aspects of Hav and Hav exploration with NCM, don’t want to be holding them back, want the opportunity to participate and say “Yes, let’s accelerate things, let’s put the foot down, let’s treat the Eastern Breccia as a separate area and dedicate drill rigs.”
- Want to be a good JV (joint venture) partner on Hav.

*Was there not an opportunity to do this raise before, when the SP (share price) was stronger?
- Always interesting as to the timing of these events, it’s multi factorial around the timing of these events
- When I joined, there wasn’t the necessary resolutions in place so we had a General Meeting in late May that effectively allowed us to raise equity
- Around that time and for some months, had the various drafts/iterations around the PFS (Pre-Feasibility Study) on Hav, felt it was important to have a clear market, to have that information in the market to ensure that when we went to market that Shareholders had a good understanding of where everything was set
- This was the first opportunity post the PFS, we spent about 2 or 3 weeks marketing and explaining the PFS to the market and took 1 or 2 weeks to get everything in line for the equity raise and talk to some Institutions ahead of time to get their early commitments and get the confidence to launch
- We raised a measured amount, we like to think Hav is a really special world class asset and like to think that gives us an opportunity for a rerate in the market
- Didn’t go out to raise the largest amount we could, just a measured amount to maintain the programs and option values in the exploration program.
- Upsized a little bit to give all our shareholders opportunity to participate, fundamentally we felt we were quite measured both in terms of the timing, felt it was the first opportunity we had and didn’t try to knock the lights out in terms of quantum, really just wanted to get the equity raise to achieve those strategic aims that we had around continuing to invest in our asset base.

*So, are these the first institutions on the Greatland register now?
- Effectively yes, but we’ve got some ETF type funds like the Van Eck’s of this world that have been holders previously.
- What we’re able to do here is bring on more than a dozen funds onto the market, half a dozen of those we like to think are top tier, long owning insto’s that we’re going to have a long relationship with that ultimately, as we go through the phases of fully developing Hav will be there for the journey to support us through that.
- Letting them onto the register and having the stability of institutional holdings on our share register are all really positive steps in the maturity of the company and the share register and sets us up for long-term success.
- We think the strategic aims of that raising in terms of diversifying the share register was a great success.

*I see Shaun, you’ve taken advantage of what you’d argue is an attractive SP to become a shareholder yourself now?
- A number of the team did, really we didn’t feel that until the PFS was out in the market that the management team could trade given that we had insights beyond what the rest of the market had
- Whenever we go out and do an equity raise, we’re encouraging our shareholders and potential new investors to invest
- Wasn’t just me, a number of the senior management, more than half our management team participated, hopefully that gives people confidence around the way we see it internally, it’s good to be invested.

*You touched on it earlier, but just away from Hav - you see some good prospectivity on these 100% owned projects?
- It continues to be the case, you look at the exploration success we continue to have at Hav, it’s just absolutely sensational, the last drill results coming out, with 22 intercepts including one at 120m at 10g plus 0.66 copper
- There’s Telfer to the east of us, Winu to the north - we’re in Elephant Country
- The structures are typically through the North West, the Scallywag tenement sits to the NW of Hav, together with our Juri JV beyond that, we think that’s incredibly interesting ground
- We want to continue to invest in that, the best thing we can do to continue to add value to our shareholders is find another Hav, even another half Hav would be of a tremendous benefit
- Equally, some of the targets we have outside the Paterson are exciting to us, hope to be drilling on Ernest Giles next year subject to agreement with First Nations
- But equally I mentioned before we have some interesting opportunities for Gold and Nickel across Bromus and up in Panorama and again it’s about walking forward the whole portfolio
- I’ll mention Tasmania just for good order, flagged that we are going to talk to other people about coming in, but they’re still good quality assets, be open to co-investing with people on them, particularly Firetower that has existing gold ounces identified there
- Really good exploration portfolio that the team has put together, creates a huge amount of option value for our shareholders that we should want to unlock.

*So, there’s plenty planned here Shaun across the portfolio, one of the big jobs to getting some real value in the shares and getting it off the 12-month lows?
- Well correct and this is the other part of it, that some of the feedback that we had was that the low cash balance was creating a bit of a drag on the stock price because some people saw us as trading you know cum raising
- Fundamentally you do need money to run drill programs to keep good people in the team
- This gives us a cash balance that removes that overhang off the stock price, and allows us to create drill information and optionality for value enhancement not just across Hav but across the broader portfolio
- That’s really the idea of this raising, to continue to chase value not just at Hav but across that fuller portfolio.