RJB225: Another well balanced post. The only problem may come when they try to get funding from outside sources because they will want a Rock Solid business plan and security to loan them the money. It is unlikely that given their track record to date, that any sponsor will walk away from a 'Tin-Pot'mining company that showed no profit all the while they have been in business.
All you need to do is put yourself in the position of the Lender and ask yourself, would I get a return and would it be a safe and secure bet? I doubt you would.
It could also depend on how good and reliable the "restructure" plan is. In addition, it could sound extremely salient and could have all the back up you need for a 'reliable' ongoing business. So, you lend them $3M Dollars, but along with that, you find someone who know's what they are doing to oversee that the business runs according straight and to plan. If not, sure as eggs is eggs, within a year, that money could be gone on whatever, they fold and you lose the lot.
I would not want to give them any money without a 101% sure-fire guarantee that the security they would offer are ALL their own properties! As far as I know, there are no valuable assets outside their properties that would secure enough funding to proceed with their plans, whatever they are. Maybe a Joint Venture partner, with say a $1M dollar up front funding fee. They would need to get that by raising funds from placings or a loan, if not, the said security, so it could be a non-starter. If they won't offer a private vetted guarantor, walk away!
Catch you tomorrow. It's 7.11 PM UK Time. I'm off!
AI
