PERTH (miningweekly.com) – The shareholders of ASX-listed Havilah Resources on Thursday rejected a A$100-million funding deal with Sanjeev Gupta’s GFG Alliance.
The funding would have been provided through a series of equity placements in Havilah, at a premium of up to 35%, over a three-year period, potentially providing GFG with a 51% stake in Havilah, if all the equity placements are made.
The funds would have gone towards corporate and administrative costs, a number of project work programmes, and exploration and development costs, particularly of the Mutooroo copper/cobalt project following the delivering of a positive definitive feasibility study.
However, 76.4% of Havilah’s shareholders voted against the proposed raising, with the company’s technical director, Dr Chris Giles also voting against the transaction, despite his earlier support for the transaction.
Havilah on Thursday told shareholders that with the votes being cast, the company had been informed by GFG that it would be reserving all of its rights, including its entitlement to recover costs incurred since the May agreement, against both Havilah and Giles, as Giles’s actions were inconsistent with his original proposed recommendations and his support of the proposed transaction.
Giles was one of the signatories on the original agreement.
Meanwhile, Havilah told shareholders that the company would now move "in a different direction" to extract value from its in-ground mineral deposits.