Value Microcaps Junior Miners

[dr_airtime]

EDV.TO - dilution or project finance?

EDV got its name from a spin out from Endeavor Financial who specializes in resource industry structured finance.

http://www.endeavourfinancial.com/contact-us/our-global-offices.aspx

Likely that a large potion of $325m in capex will be debt financed. Ideally EDV could be strong enough in 1-2 years that they could raise debt at corporate level (bond or term loan) that would require no hedging. If not, project finance with a portion hedged. Either way I imagine they could do at least 50% with debt and may only need a small equity raise.

Because Endeavour Financial is shareholder they are much more astute in this aspect than 99% of other producing juniors in this area.

They had $110M in WC with $50M in cash at Sep-30-14 (all $USD)