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Much-watched junior explorer Greentech Metals (ASX:GRE) has raised $3.4 million from multiple sources to kick off copper drilling at Whundo.
That comes through a $2.4M raising via placement; a $140,000 payment from the Western Australian Government, and then, a technicality – Topdrill has inked a $1M drill-for-equity agreement wherein up to 35% of future costs will be paid in GRE shares.
All in all, the drilling this cash funds will kick off in December, all things in order, with the work program to be “released” next week.
Whundo is 100% owned by Greentech and is the main focus of GRE’s geotechs at this time.
In the background, the company continues to hold onto lithium assets – something this finance journalist wouldn’t be surprised to see sold down the line.
And based on what HotCopper users who spoke their mind in GRE’s relevant announcement thread said on Wednesday – there’s also questions around the drill-for-equity deal.
A complaint – it wasn’t escrowed.
“Desperate times need desperate measures…….only winner here is the drill contractor. No escrow?,” user MineralWater wrote.
The implication here is Topdrill can sign this deal, do the work, then immediately go sell – especially before any further dilutive funding exercises.
“Should have been escrowed or give loyal [long term] retail holders a deal,” user Drumo wrote. It could be said that showing any kind of loyalty to a junior explorer at all is a dangerous game.
At least one user reminisced on better times. Greentech Metals started out the year at just under 70cps. Despite a strong copper thematic, it’s been forced to endure a rerate – though, it’s only got 83M shares on issue. Could be worse.
A more pressing problem appears to be that the stock has had liquidity sucked out of it.
GRE last traded at 9.9cps.
Join the discussion: See what HotCopper users are saying about Greentech and be part of the conversations that move the markets.
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