Facts

Corporate finance is about the relative risk/reward.

Debt has less risk than equity, so deserves a lower reward for the same risk.

GMC have given up 25% of the project for $6M debt. The debt holder receives title to the 2 smelters and will only invest this debt if certain conditions are met.

By the nature of corporate finance theory, it then follows that 75% of equity in the project with the same upside should cost less than $18M (3 x $6M for 25%).

By comparison there are 2.6bn shares on offer and 1.65bn options at $0.005.